On February 24, South Africa’s antitrust watchdog fined Google and Meta for anti-competitive practices for allegedly harming local media companies, highlighting how the South Africa tech landscape is ensuring a fair competitiveness.
The South African Competition Commission proposed that Google pay $27 million (500 million Rand) annually for five years to support local South African tech news outlets struggling to monetize content and secure digital traffic.
Media and Digital Platforms Market Inquiry (MDPMI) report published by South Africa’s Competition Commission followed a 16-month investigation regarding the South Africa tech industry regulation into the tech platforms. This isn’t final because the parties have six weeks to submit a final report before its published after four or five months, as it was mentioned by News24 regarding the safety of tech companies in South Africa.
The Competition Commission also requested different solutions from Elon Musk’s social media platform X, YouTube, and ByteDance TikTok, including bias toward global media and encouraging community and native media, it said in a statement.
“There are market features on digital platforms that distribute news-media content that impede, distort, or restrict competition,” stated the Commission.
Google rejected the South Africa tech watchdog accusations, arguing its services actually benefit publishers instead of extracting value to the industry.
In 2023, the Chrome-parent’s Search and News reportedly generated $18.55 million (350 million Rand) in referral traffic to their publishers, while Google’s reported ad revenue from news searches was just below $1.007 million (19 million Rand), according to the tech giant.
“Alongside this, we have invested in products, training and partnerships to support publishers and the broader news ecosystem, and will continue to do so,” stated the Comission.
Meta’s African operation was unavailable for immediate comment. Temporary measures only protect the companies’ South African operations added.
Local newsrooms lose out as there is “limited scope” for citizens to pay for news and therefore subscriptions are not feasible for public and community media, added the commission.
Digital Battle Against South Africa Tech Landscape
South Africa’s action against Big Tech companies in South Africa goes beyond an antitrust issue but rather highlighting political and economic tensions from the US and Israel. As two of Israel’s closest technological allies, Google and Meta have a large influence in building narratives and collecting data.
The legal battle against the biggest tech companies in South Africa shows resistance against digital spying by these nations. This comes against the reality of rising tensions with President Donald Trump intensifying pressure on the tech industry in South Africa to drop a case of genocide, putting global relations to the test once again. The move reflects a growing distrust of Big Tech’s global role as more governments question their intentions and motives.
In this, tech giants in South Africa have taken a step in showing great resistance of digital sovereignty to secure its national interests amid times of trouble.
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