Google has agreed to pay over $40 million to support South African news media outlets, according to the country’s competition authority. The move is aimed at addressing concerns that tech giants, including Google, TikTok, X, and Facebook, have been engaging in anti-competitive practices that harm local media. The Competition Commission had previously recommended that Google pay up to $27 million annually for five years, following a 16-month investigation that found Google searches favored international news over local outlets.
The $40.4 million funding package will be allocated over several years, with $4 million going to national publishers and broadcasters for content on Google News, and $2.6 million annually to support artificial intelligence innovation. Community and small media outlets will receive $2.2 million over three years to support digital transformation. Google will also introduce new user tools to prioritize local news sources, provide technical assistance to improve website performance, and share enhanced audience data.
The agreement comes after similar funding deals were reached in countries such as Taiwan, Canada, Australia, and the United States, amid growing pressure from governments to regulate tech giants. TikTok has also agreed to provide new tools to help media outlets monetize their content, while X, owned by Elon Musk, has been ordered to make its monetization programs available to local publishers and provide training workshops.
The directive can be appealed, according to the commission. The move is significant, as it highlights the ongoing efforts by governments to ensure that tech giants support local media outlets and promote media diversity. The funding package is expected to help South African news media outlets to adapt to the digital age and remain competitive.
The Competition Commission’s investigation found that Google’s search algorithm favored international news over local outlets, which had a negative impact on the ability of local media to distribute and profit from their digital content. The agreement aims to address this issue and promote a more level playing field for local media outlets. With the rise of digital media, it is essential for governments to ensure that tech giants support local media outlets and promote media diversity, to maintain a healthy and vibrant media landscape.