South Africa’s Competition Commission Targets Tech Giants Over Antitrust Concerns

South Africa’s antitrust authority has taken action against major technology firms, including Alphabet Inc.’s Google and Meta Platforms Inc.’s Facebook, for what it describes as anti-competitive practices that negatively impact local media companies, according to Bloomberg.

Following a 16-month probe into the conduct of these digital platforms, the Competition Commission has recommended that Google compensate local news publishers with payments of up to 500 million rand ($27 million) per year for a period of up to five years. Per Bloomberg, the Commission argues that Google’s practices have made it difficult for South African news outlets to attract and monetize digital traffic.

The Commission’s report is not yet final, and affected parties have six weeks to submit their responses before a conclusive ruling is published in the next four to five months, according to News24.

Beyond Google, the regulatory body has proposed additional remedies for other tech companies, including Elon Musk’s X (formerly Twitter), YouTube, and ByteDance Ltd.’s TikTok. These platforms have been urged to address perceived biases that favor foreign media and to take measures that support vernacular and community media, the Commission stated in a release on Monday.

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“There are market features on digital platforms that distribute news-media content that impede, distort, or restrict competition,” the Commission reported. However, Google has contested these claims, maintaining that it has not disproportionately benefited from local publishers. In a statement sent via email, the company highlighted that its products, including Google Search and News, generated an estimated 350 million rand in referral traffic value for South African publishers in 2023, while it earned under 19 million rand from advertisements placed next to news-related searches.

“Alongside this, we have invested in products, training and partnerships to support publishers and the broader news ecosystem, and will continue to do so,” Google said in its statement.

The Commission’s findings place added pressure on global tech companies to reassess their role in local media markets, with potential financial and operational implications should the proposed measures be implemented.

Source: Bloomberg