Google has agreed to pay over $40 million to support South African news media outlets, the country’s competition authority announced. This move aims to address concerns that tech giants, including Google, TikTok, X, and Facebook, have engaged in anti-competitive practices that harm local media by limiting their ability to distribute and profit from digital content.
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. However, the California-based company ultimately agreed to a $40.4 million funding package. Under the agreement, $4 million will be allocated to national publishers and broadcasters over five years for content on Google News, while $2.6 million will be provided 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. Additionally, YouTube has agreed to support monetization, and the platforms have committed to removing algorithmic bias favoring foreign outlets.
This funding deal is part of a growing trend, with similar agreements reached in countries such as Taiwan, Canada, Australia, and the United States. These arrangements are a response to mounting pressure from governments to introduce regulations requiring tech giants to support local media. TikTok has also agreed to provide new tools, including allowing media to insert links within videos to monetize off-platform content.
In contrast, social media platform X, owned by South African-born billionaire Elon Musk, did not reach a settlement and has been ordered to make all monetization programs available to local publishers and provide training workshops. The directive can be appealed, according to the commission.
The agreement highlights the ongoing efforts to address the challenges faced by local media in the digital age. As the media landscape continues to evolve, it is likely that we will see more initiatives aimed at supporting local news outlets and promoting a diverse and vibrant media ecosystem. The South African competition authority’s move sets a precedent for other countries to follow, emphasizing the importance of fair competition and support for local media in the digital age.