SA news industry gets R688m cash injection

THE Competition Commission has released its final report on the Media and Digital Platforms Market Inquiry (MDPMI), presenting key findings and binding remedies to foster fairness and sustainability in South Africa's media landscape.

- THABO MAKWAKWA

Following two months of negotiations, the Commission secured a broad remedial package designed to support the media industry's recovery.

Competition Commissioner Doris Tshepe handed the report to Minister of Trade, Industry and Competition (DTIC) Parks Tau at an official launch in Sandton.

Tshepe urged the minister to seriously consider the recommendations, noting the importance of supporting struggling media houses.

"I commend all media players, including Google, who agreed to some remedial actions," Tshepe said. "It is vital to provide a lifeline for the media sector."

Chairperson of the Inquiry, James Hodge, underscored the monopolistic power of major global platforms dominating South Africa's digital space.

The report reveals Google's dominance in internet search, with news queries accounting for 5-10% of traffic and driving significant advertising revenue.

However, it does not compensate South African media outlets for displayed or summarised news content.

"Referral traffic to media websites has dropped sharply as users consume AI-generated summaries or remain within Google's own platforms," Hodge explained.

"Additionally, Google's algorithms favour large foreign outlets over local and vernacular media, exacerbating content visibility and advertising inequalities."

Microsoft exhibits similar bias through its MSN news service, contracting with only a limited number of South African publishers.

On social media, platforms like Meta (Facebook, Instagram, WhatsApp), YouTube, X, and TikTok play key roles in news distribution, especially to community and vernacular audiences.