South Africa’s Competition Commission is cracking down on global tech firms like Google, Meta, and X (formerly Twitter), urging them to compensate local news publishers for using their content.

The proposal suggests that Google pay South African media companies between R300 million ($16.3 million) and R500 million ($27 million) annually over a three- to five-year period.

The Commission’s recommendations aim to address declining revenues in the local media industry, restore referral traffic lost due to content de-prioritisation, and enhance monetisation opportunities for media companies and broadcasters.

For instance, YouTube is recommended to increase the revenue share to 70% and promote higher-value direct sales by the media.

This move aligns with global initiatives like Australia’s News Media Bargaining Code, which has led to significant financial agreements between tech firms and news outlets.

Local media houses have struggled financially as advertising revenue migrates to digital platforms, leaving traditional publishers with shrinking income streams.

The Commission has also raised concerns that Meta and X have deliberately reduced the visibility of news content on their platforms, negatively impacting referral traffic to local media sites.

To address this, the Commission recommends allowing South African news publishers to negotiate collectively with AI firms over the use of their content for training purposes.

Implementing these recommendations could reshape the relationship between South African media companies and global digital giants.

However, enforcing these policies may prove challenging, as similar moves in other countries have faced pushback from tech firms.