The South African Competition Commission is scrutinizing Google for allegedly profiting unfairly from local news publishers. Despite Google’s claims of supporting publishers, the commission estimates their earnings from news-related searches to be much higher than Google acknowledges. Recommendations include annual payments to publishers and changes to enhance traffic to news websites, indicating an ongoing dispute with significant implications for the media industry.
The South African Competition Commission has intensified its examination of large technology firms, specifically targeting Google. After a comprehensive 16-month investigation, the commission accuses Google of unjustly acquiring a substantial share of revenue from local news publishers, further complicating the challenges faced by an already delicate media sector.
A critical aspect of the dispute centers on Google’s dominance in the search market and the concept of “zero-click” searches, wherein users obtain information directly from Google’s results page, bypassing news websites. The commission contends that this practice severely impacts media outlets by diminishing their web traffic and advertising revenue, while Google continues to profit.
In response, Google has refuted these allegations. The company asserts that it significantly aids publishers by driving traffic to their websites and investing in necessary tools and training. Google claims its platforms generated approximately R350 million ($18 million) in referral traffic for South African publishers in 2023, whereas its ad revenue from news-related searches was less than R19 million ($1 million).
Despite Google’s assertions, the commission remains skeptical. It estimates Google’s earnings from news-related searches to be much higher, ranging between R800 million and R900 million ($42 million–$47 million). As a corrective action, the commission suggests that Google should pay R500 million ($26 million) annually to local publishers and modify its search functions to enhance traffic directed to news websites.
Khusela Sangoni Diko, the chairperson of the Portfolio Committee on Communication and Digital Technologies, has expressed strong support for the commission’s recommendations. She believes the proposed changes could lead to significant reforms, including a new media policy that would require digital platforms like Google and YouTube to remunerate news publishers for their content.
Currently, Google has stated that it is reviewing the findings put forth by the commission before issuing a comprehensive response. Nonetheless, it remains clear that this ongoing dispute is far from resolved.
In summary, Google’s alleged unfair profit-sharing practices from local news publishers have led to scrutiny from South Africa’s Competition Commission. While the commission estimates Google’s earnings from related searches to be considerably higher than claimed, Google defends its role in supporting publishers. The recommendations made by the commission, backed by public officials, could lead to key reforms in the relationship between tech platforms and news publishers. Thus, the resolution of this matter remains pending, with significant implications for the media landscape.
Original Source: www.techinafrica.com
