South Africa Considers Big Tech-Funded Media Support Fund

South Africa Big Tech Media Fund Consideration: South Africa’s Competition Commission is contemplating creating a support fund by global tech firms like Google and Meta to assist struggling local media houses. This initiative follows public hearings highlighting the adverse effects of Big Tech on the local media landscape. 

South Africa Big Tech Media Fund Consideration

According to Techcentral, the development was one of the corrective actions the regulatory body is investigating. It leads into the next phase of its media and digital platforms market inquiry (MDPMI), the public hearings for which were held in March. 

The Competition Commission looks to compensate for support for both large and small publications. This is done while learning from international precedents like Australia’s News Media and Digital Platforms Bargaining Code. 

The next phase involves in-depth investigations to decide on effective remedial actions. 

During the public hearings, media groups highlighted the impact of Big Tech platforms on the local media, and raised the issue of fair remuneration for journalistic content.

Note that in the world of media innovation, the sealant between news organizations and tech giants takes center stage. Armed with advanced tech and deep pockets, Big Tech firms hold the keys to revolutionizing media technology and even entire media landscapes.

South Africa Big Tech Media Fund Consideration To Change Media House Business Model

Noluthando Jokazi, senior analyst at the Competition Commission and case manager for the MDPMI, expressed her opinion about the initiative  to Techcentral. She said, “We are looking at how media businesses might be able to change their business models, if they can, and find new ways of generating revenue from their content”. 

“We are also trying to see how the likes of Google, Meta and the other platform operators could remunerate publications for their content.” 

Also Read: South Africa Considers Funding Media Houses with Help from Big Tech

Also according to Jokazi, the commission is keeping the effects of remedial actions by regulators in other countries in mind as it considers what to implement in the local market.

In 2020, the Australian Competition and Consumer Commission drafted the News Media and Digital Platforms Bargaining Code (NMBC), which was subsequently written into legislation that same year. 

Competition Commission To Fund Smaller Publications 

Large tech platforms are instructed to pay local news publishers for the news content available on their platforms under the NMBC. The same legislation was passed in Canada in 2023. It is called the Online News Act. 

To protect smaller publications from being sidelined, the Competition Commission is considering a pooled fund where media houses are paid based on website traffic as a possible solution. Jokazi said the commission is aware that such a solution might be open to abuse, but it will investigate how it might be better structured in the next phase of the inquiry.

However, it is not only smaller publications that are facing problems in South Africa. Moneyweb recently highlighted that Media24, South Africa’s largest media house, will shut down five of its print publications. This will likely cut off 400 jobs in the process. 

Looking Ahead 

Media24 CEO, Ishmet Davidson, alleged that Google was pulling off advertising revenue out of South Africa. He highlighted that the actions were making it difficult for local journals to survive. He said this during his presentation to the Competition Commission’s public hearings in March. 

Nevertheless, the next phase of the inquiry involves confidential in-camera sessions. In this phase, the commission aims to use the private nature of the sessions to probe further into sensitive information. This includes revenues generated and traffic volumes.