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Big Tech monopoly blamed for media downturn, Google urged to pay up to R500m annually to a fund

Big Tech monopoly blamed for media downturn, Google urged to pay up to R500m annually to a fund
Ferial Haffajee
By Ferial Haffajee
24 Feb 2025
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Most people get their news on tech platforms like Google’s search engine, YouTube, TikTok and X, which in turn get their news from the media. The Competition Commission has found that the revenues are not fairly divvied, echoing findings from inquiries and regulations in countries such as Canada and Australia.

The Competition Commission has found that Google and other Big Tech platforms used damaging monopoly practices, which have led to the decline of media, which it says is an essential adjunct of free speech and constitutional democracy.

In its provisional report released on Monday, 24 February 2025, the Competition Commission recommended that Google pay R300-million to R500-million per year into a media fund for three to five years and then negotiate a fairer playing field with the media. Based on the Competition Commission's research, this is a percentage of Google’s revenue in South Africa.

Most people get their news on tech platforms like Google’s search engine, YouTube, TikTok, and X, which in turn get their news from the media. The Competition Commission has found that the revenues are not fairly divvied, echoing findings from inquiries and regulations in countries such as Canada and Australia.

The Competition Commission inquiry has also found that the negative impacts have been general on the media but have harmed the community, vernacular and the public broadcaster more than the mainstream. It has recommended that a fund be established to compensate these parts of the media more fulsomely.

The Competition Commission’s Media and Digital Platforms Market Inquiry released its long-awaited provisional report, now open for comment for six weeks. A final report is expected in four to five months. The inquiry started in 2023.

A cushion for media sustainability


If the companies don’t agree to fund a cushion for media sustainability, they could face a digital tariff of five to 10% a year on their digital advertising revenues. The Competition Commission has also made far-reaching findings on how global AI platforms, including, but not limited to the incumbent, pose a fresh challenge to media sustainability and diversity and recommended a set of far-reaching regulations and practices to prevent further harm.

Asked what the chances of success were given that Big Tech was now an ascendant political force in the US and that President Donald Trump has become an advocate against tech regulation, not only in the EU but in the world, the inquiry’s chairperson, James Hodge, said: “We do hear a lot of bluster coming from across the Atlantic. We do have the right to investigate and the power to impose binding remedies. For most of these [tech] companies, simply exiting is not an option. We represent a market where they earn good revenues.

“Some of the media bargaining [with Big Tech in other countries] we have looked at had unintended consequences, and we have looked for a win-win solution. This is an opportunity to consider whether South Africa can be a testing ground. We think they should be interested [because we offer an alternative solution]. It’s about finding sustainable long-term traffic [for the media].

“There’s a lot of incentive for them [the tech platforms] to engage and look for a long-term solution, as it offers more stability.”

Hodge said the Competition Commission had agreements with tech companies, including Booking.com (the accommodation global giant headquartered in The Netherlands). The Association of Independent Publishers in 2024 reached a ground-breaking deal with Google to fund local community media to the tune of R114-million over three years.

Initiatives on media bargaining


Competition Commissioner Doris Tshepe said: “There have been initiatives worldwide on media bargaining. We have sought to be more inclusive and ambitious in our terms of reference. We included radio and television, the private and public media, AI and the ad-tech industry.

“Media are key agents in the fulfilment of free expression as a constitutional right. Any undue harm would harm these constitutional rights. This is the context that the inquiry was initiated in. A key priority is to preserve a strong independent media.”

Commission panellist Paul Fray, the media leader, said the provisional report was an opportunity to engage the public on the value of media in a constitutional democracy.

“News media plays a vital role in upholding free speech, and face substantial challenges. A total of 87% of the population now get their news online. Intermediaries [like tech platforms] are now the main source of information. The SABC’s ad revenue has, for example, declined 47% from its peak. The news media has not been able to replace the ad revenue,” said Fray.

She said the number of journalists working in South Africa had halved as media companies slashed costs. 

Implications for democracy


“This has implications for democracy,” said Fray. The inquiry identified biases in algorithms that recommend what you find, and the investigation found that Google, for example, had a bias for foreign media over local media; YouTube prioritised its channel over local media.

Fray said the AI age would see a snowballing trend unless arrested. She said the inquiry found that while media content played an oversized role in training, it was not compensated properly by the emerging AI giants. 

“South African media has been used in small amounts [to train AI’s large language models], but its importance is expected to grow,” said Fray.

The provisional report will be open for comment for six weeks. The Competition Commission expects stakeholder comments and plans to release a final and binding report in four to five months. DM

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