Google Warns South Africa’s Media Plan Could Hurt Investment and Innovation

A new media regulation plan by South Africa’s Competition Commission is drawing criticism from Google, which warns that the proposed changes could restrict news access, reduce investment, and stifle digital innovation.

The Controversy: What the Competition Commission Wants

The provisional report on media and digital platforms aims to change the way tech giants like Google interact with news publishers in South Africa. Among its recommendations:

Forcing Google to financially compensate certain news publishers based on perceived value to its business.
Giving local news content algorithmic preference, which could limit the diversity of search results.
Introducing a digital services tax on online advertising, benefiting publishers but potentially harming digital trade.
Restricting AI-driven innovations, such as Google’s Gemini and AI Overviews.

Google argues that these measures are outdated and counterproductive, pointing out that the way people consume news has drastically changed—with users searching, streaming, and scrolling across multiple platforms.

Google’s Concerns: Less Choice, Less Money, Less Innovation

Google’s Charles Murito, who authored the response, highlights the negative consequences of these regulations:

Less choice for consumers – Algorithmic changes could limit access to a variety of perspectives, infringing on free expression.
Less revenue for publishers – Google’s adtech tools help news publishers monetize content, but the proposed rules may increase costs and limit earnings.
A weaker content ecosystem – YouTube allows South African creators to reach global audiences and earn revenue, but forced revenue-sharing rules may be unsustainable.
Trade barriers – A new digital tax on online advertising could hinder cross-border digital trade.
Restricted AI innovation – South Africans may lose access to AI-driven tools like Google Gemini, which simplify complex topics and enhance learning.

Google’s Role in Supporting South African Journalism

Despite the commission’s findings, Google argues that it already supports journalism in South Africa through:

Driving traffic to news publishers – In 2023, Google Search, News, and Discover generated 545 million clicks to South African publishers, valued at R350 million in referral traffic.
Advertising revenue opportunities – Google’s ad technology enables publishers to monetize content efficiently.
Training programs – Over 1,500 journalists and publishers have been trained in digital skills, audience engagement, and AI for news.
Financial investments – The R114-million Digital News Transformation Fund, launched with the Association of Independent Publishers, helps local news publishers build sustainable business models.

Finding a Balanced Solution

Google stresses that placing the burden of digital transformation solely on one platform is unfair. Instead, the future of news publishing should involve collaboration between government, businesses, digital platforms, and publishers.

The debate raises key questions:

• Should Google be forced to pay publishers for news links despite driving traffic to their sites?

• Will algorithmic changes limit South Africans’ access to diverse news sources?

• Could new taxes on digital advertising hurt South Africa’s online economy?

As discussions continue, the challenge lies in balancing the sustainability of journalism with the realities of a fast-evolving digital world.

{Source Tech Central}

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