LISTEN: South African Competition Commission Finds Digital Platforms Threaten News Media Sustainability
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A provisional report from South Africa’s Competition Commission warns that major tech platforms are undermining the sustainability of local news media.
The Media and Digital Platforms Market Inquiry (MDPMI) investigation highlights significant bargaining power imbalances between news organizations and tech giants like Google and Meta, resulting in declining revenues across traditional media.
Key Findings
The report identifies several concerning trends:
- Unequal Bargaining Power: Publishers have little leverage when negotiating with platforms that control audience access
- Revenue Decline: Digital advertising shifts have dramatically reduced funding for quality journalism
- Platform Dominance: The inquiry examined how search engines, social media, advertising technology, and artificial intelligence may undermine media competition
Proposed Solutions
The Commission suggests several potential remedies:
- Mandatory negotiation frameworks with binding arbitration
- Revenue sharing requirements for news content
- Transparency obligations for content ranking and monetization
- Data sharing provisions to help publishers optimize distribution
The Competition Commission is seeking stakeholder feedback before issuing final recommendations aimed at ensuring a fairer value exchange and promoting a diverse media ecosystem that supports journalism.
