The Competition Commission of South Africa has recommended that major tech companies Google, Meta, and X pay local news publishers for content use.
The provisional report suggests Google could pay between R300 million and R500 million annually to South African publishers over three to five years.
The proposal mirrors Australia’s News Media Bargaining Code, which established payment structures between tech platforms and news organisations.
The investigation of the Commission’s investigation found that digital platforms have captured advertising revenue that once sustained traditional media.
As advertising budgets shifted online, Google and Meta captured the majority of digital ad spending while using news content without adequate compensation.
YouTube faces specific recommendations to increase revenue sharing with media companies to 70% and promote higher-value direct sales opportunities.
The report also addresses deliberate reduction of news content visibility on platforms, which has diminished referral traffic to publisher websites.
The recommendations extend to collective bargaining rights, allowing publishers to negotiate as a unified group with AI companies regarding content use for training artificial intelligence systems.
If implemented, these measures could transform relationships between local media and global tech platforms.
However, similar initiatives in Australia and Canada have faced resistance from tech companies, sometimes resulting in news content restrictions.
The South African government may need additional regulatory measures if tech giants resist compliance.
