Pretoria: The government of South Africa has expressed its acknowledgment and support for the provisional outcomes of the Media and Digital Platforms Market Inquiry (MDPMI), as spearheaded by the Competition Commission of South Africa.
According to South African Government News Agency, the preliminary report from the commission has recommended that Google should pay up to R500 million annually to support South Africa’s news industry. The commission has also suggested implementing a digital tariff of 5% to 10% on major tech companies like Google, Meta, and Microsoft if they do not adequately compensate media organizations for the content shared on their platforms.
The MDPMI, which commenced on 17 October 2023, aims to scrutinize the characteristics of digital platforms that disseminate news media content. The objective is to identify elements that may impede or distort competition, or undermine the goals of the Competition Act. The Government Communication and Information System (GCIS) has labeled the inquiry as a significant move towards ensuring a fair and competitive digital media environment that sustains local journalism and encourages media diversity.
The GCIS noted in a Wednesday statement that the South African media landscape is rapidly evolving, with digital platforms increasingly dominating content distribution and advertising revenue. Michael Markovitz, Adjunct Faculty Member and Head of the GIBS Media Leadership Think Tank, mentioned that the report aims to address the root causes of anti-competitive behavior among big tech companies and seeks to fundamentally reshape the digital market to foster fairer competitive dynamics.
The inquiry evaluated the influence of global digital giants on local media businesses, ensuring that South African publishers, broadcasters, and digital content creators can compete equitably. The government, through the GCIS and in collaboration with members of the Print and Digital Media Transformation Steering Committee, remains committed to supporting an independent and sustainable media sector, recognizing its crucial role in strengthening democracy and ensuring access to diverse sources of information.
Deputy Minister in the Presidency, Kenny Morolong, stated that the GCIS will collaborate with all stakeholders, including media houses, digital platforms, advertisers, and the public to implement the final outcomes of the MDPMI. Morolong emphasized the GCIS’s commitment to contribute to solutions for challenges facing the media sector while unlocking opportunities for innovation and growth.
The GCIS highlighted that the inquiry’s provisional outcomes promote efforts for media transformation and sustainability, enhancing economic participation and safeguarding public interest journalism, which is essential for a fair and diverse media landscape in South Africa.
Meanwhile, Khusela Diko, Chairperson of the Portfolio Committee on Communication and Digital Technologies, has welcomed the recommendations of the provisional report. Diko believes these recommendations bolster the committee’s call for a prompt publication of a White Paper on Audio and Audiovisual Media Services and Online Content Safety by the Department of Communication and Digital Technologies (DCDT).
Diko noted that for a long time, over-the-top (OTT) digital platforms exploited the regulatory gap at the expense of the South African Broadcasting Corporation, which operates under stringent regulations. She welcomed the recommendation that media houses be compensated for the content utilized by OTT and digital platforms. Additionally, Diko mentioned that the recommendations regarding Google and YouTube, among others, should deter the absence of direct regulation from becoming a “license for unscrupulous business practices.”