Government says it acknowledges and welcomes the provisional outcomes of the Media and Digital Platforms Market Inquiry (MDPMI), led by the Competition Commission of South Africa.
This week, the preliminary report from the commission regarding the MDPMI) garnered attention for its strong recommendation that Google should pay as much as R500 million yearly to compensate South Africa’s news industry.
The commission believes that South Africa should impose a digital tariff of 5% to 10% on major tech companies such as Google, Meta and Microsoft if they fail to fairly compensate media organisations for the content they distribute on their platforms.
The MDPMI began on 17 October 2023 and aims to investigate the characteristics of digital platforms that distribute news media content.
The focus is on identifying features that may hinder, distort, or restrict competition, or that undermine the objectives of the Competition Act.
The Government Communication and Information System (GCIS) has since described the inquiry as a crucial step in ensuring a fair and competitive digital media environment that supports the sustainability of local journalism and promotes media diversity.
“The South African media landscape is evolving rapidly, with digital platforms playing an increasingly dominant role in content distribution and advertising revenue,” a statement from the GCIS on Wednesday read.
Adjunct Faculty Member and Head of the GIBS Media Leadership Think Tank, Michael Markovitz, stated that the report aims to address the root causes of anti-competitive behaviour among big tech companies, and seeks to fundamentally reshape the digital market to foster fairer competitive dynamics.
The inquiry assessed the impact of global digital giants on local media businesses, ensuring that South African publishers, broadcasters and digital content creators can compete on a level playing field.
Government – through the GCIS, in partnership with members of the Print and Digital Media Transformation Steering Committee – said it remains committed to supporting an independent, pluralistic and sustainable media sector, recognising its fundamental role in strengthening democracy and ensuring access to diverse sources of information.
Deputy Minister in the Presidency, Kenny Morolong, said the GCIS will work with all stakeholders, including media houses, digital platforms, advertisers, and the public on the implementation of the final outcomes of the MDPMI.
“We will also contribute to the solutions proposed for addressing the challenges facing the media sector while unlocking opportunities for innovation and growth,” Morolong said.
The GCIS said the inquiry’s provisional outcome supports efforts for media transformation and sustainability, promoting economic participation and safeguarding public interest journalism, which is vital for a fair and diverse media landscape in South Africa.
White paper
Meanwhile, the Chairperson of the Portfolio Committee on Communication and Digital Technologies, Khusela Diko, has welcomed the recommendations of the provisional report.
Diko believes that the recommendations strengthen the committee’s call for an urgent publication of a White Paper on Audio and Audiovisual Media Services and Online Content Safety by the Department of Communication and Digital Technologies (DCDT).
“For a very long time, over-the-top (OTT) digital platforms exploited the regulatory gap in the sector to the detriment of the public broadcaster, the South African Broadcasting Corporation, which operates under stringent regulations. We further welcome the recommendation that media houses be remunerated for the content they produce that gets to be exploited by OTT and digital platforms,” Diko explained.
She further said that the recommendations on Google and YouTube, amongst others, will hopefully serve as a deterrent to everyone that the lack of direct regulation in the sector is not “licencee for unscrupulous business practices”.
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