South Africa’s Competition Commission Seeks to Rectify News Distribution Inequalities

The South African Competition Commission released a report addressing disparities in news distribution caused by digital platforms like Google, TikTok, and Meta. It recommends that Google compensate local news agencies and calls for modifications in algorithms to enhance visibility of local news. The inquiry emphasizes the barriers to accessing journalism due to subscription costs and the challenges posed by AI in the media sector.

In an effort to address emerging inequalities within South Africa’s news landscape, the Competition Commission has introduced a provisional report outlining recommended actions. This initiative follows an extensive investigation into how digital giants such as Google, TikTok, and Meta have impacted news distribution and audience behavior amidst the ongoing digital transformation of media.

The preliminary report was published on 24 February and invites public feedback over the next six weeks, with a finalized report expected in four to five months. The Commission’s inquiry, conducted under section 43B(1)(a) of the Competition Act 89 of 1998, reflects a significant concern regarding the reliance of 87% of audiences on digital platforms for news, primarily sourced through Google and social media.

Among its recommendations, the Commission suggests that Google compensates local news agencies between ZAR 300 million (approximately USD 16.2 million) and ZAR 500 million (approximately USD 27.1 million) to amend the disproportional audience and advertising revenue imbalances. Moreover, it emphasizes modifying algorithms to prioritize local news, providing options for news organizations to decline AI summarizations without losing visibility, ensuring accountability in fact-checking on platforms, and enhancing monetization avenues for news agencies.

The investigation also scrutinizes digital innovations, including Artificial Intelligence and AdTech, alongside traditional media formats such as television and print. Notably, the inquiry raises concerns about ongoing lawsuits against AI companies utilizing established journalism to develop their models without fair compensation.

Lastly, the report highlights a significant barrier to access information, as many South Africans cannot afford media subscriptions, thereby undermining their constitutional right to information. Concurrently, the Expropriation Act is facing criticism for its possible repercussions on the nation’s financial stability since its enactment in January.

The South African Competition Commission’s provisional report lays out critical recommendations to rectify imbalances in news distribution exacerbated by digital platforms. The call for financial compensation from Google and alterations in algorithmic practices aims to support local news organizations and enhance public access to information. Furthermore, the complexities surrounding AI’s role in journalism underscore the need for substantial reforms to protect media integrity and ensure fair monetization for news organizations.

Original Source: www.africanlawbusiness.com