Google and YouTube commit R688 million to support South African media

Zelda Venter The concluding report of the Media and Digital Platforms Market Inquiry, released on Thursday by the Competition Commission, s...

Zelda Venter

The concluding report of the Media and Digital Platforms Market Inquiry, released on Thursday by the Competition Commission, signifies a positive moment for South Africa's media sector and offers optimism for a more promising future. This includes a R688 million Media Support Package spread over five years, which has been agreed upon with Google and YouTube.

This will finance national, local, and community-based media by using a mix of content licensing, innovation grants, and programs aimed at building capabilities. It involves assistance for newsroom advancements, contributions to the Digital News Transformation Fund, and support for training in local languages via the Media Development & Diversity Agency (MDDA).

Google will also launch new user tools to emphasize local news sources, offer technical support to enhance website performance, share more detailed audience insights, and create an African News Innovation Forum. Microsoft, on the other hand, will expand its MSN news agreements to cover five more national publishers.

The commission's investigation concluded that Google holds a monopoly in the distribution of news media online via search. Google, along with several other technology companies, however, have agreed to modifications that would advantage South Africa's media landscape.

Following significant interaction and two months of discussions with international platforms and involved parties, the Competition Commission has completed several solutions aimed at revitalizing the struggling media.

The concluding report highlights the importance of news media in supporting democracy, acting as the foundation for public responsibility and well-informed citizens. However, the worldwide shift to digital platforms has significantly damaged conventional revenue systems and weakened the financial stability of news organizations.

In South Africa, falling advertising revenue and the limited capacity of audiences to afford subscriptions have resulted in smaller newsrooms, shuttered offices, and reduced reporting capabilities. At the same time, online platforms increase these challenges by drawing in audiences and taking over the monetization prospects that once supported news organizations.

The investigation revealed that major global platforms (Google, Meta, Microsoft, TikTok, X, and AI firms like OpenAI) control essential channels through which South Africans obtain information. In terms of search, Google holds a leading position. However, it does not pay South African media for the news content it features or summarizes.

In the realm of social media, Meta has now committed to establishing a Media Liaison Office in South Africa and broadening revenue opportunities via seminars, advertising credits, and the elimination of follower requirements.

YouTube will provide automatic access for all South African content creators to its Partner Programme and assist the SABC with direct advertising sales and the digitization of archives. TikTok will introduce its Publisher Support Suite in South Africa, featuring monetization and analytics tools, while X Corp will offer all monetization programs locally and conduct training workshops.

All platforms will introduce digital literacy programs to enhance media resilience and combat false information. Solutions in AdTech and AI will bring South Africa in line with top international benchmarks. Google will expand transparency efforts originally implemented in the EU, increasing clarity regarding advertising expenses and payments to publishers, and will eliminate self-favoring practices within its advertising systems.

AI firms will provide South African media with identical content management tools and options to opt out as those present in the EU, along with regular training sessions every six months to aid in creating a just and effective market for authorized content.

The Review suggests that the Department of Trade, Industry and Competition should grant a block exemption to allow South African media outlets to engage in collective negotiations regarding platform revenue terms, AI content licensing, AdTech costs, and shared advertising sales for community media.

The Communication and Digital Technology Department is also urged to create content-moderation rules under the Electronic Communications and Transactions Act (ECTA), implementing self-regulation systems for social media platforms and setting up an independent Social Media Ombud to handle public complaints and moderation activities.

The Minister of Trade and Industry, Parks Tau, who first reviewed the report on Thursday when it was delivered to him, promised to submit it to Parliament for approval within the next 10 days. He also committed to reviewing the document as quickly as possible, while praising the commission's efforts in providing a vital boost to the media sector in the country.

zelda.venter@inl.co.za

Provided by SyndiGate Media Inc.Syndigate.info).