The digital age has brought about profound changes in how we access and consume news. While technological advancements have created unprecedented opportunities for information sharing, they have also introduced new challenges, such as the growing concentration of power among a few dominant tech companies.
The Competition Commission of South Africa launched the Media and Digital Platforms Market Inquiry (MDPMI) to investigate whether Google, Meta, and other major digital platforms are engaging in anti-competitive practices that harm local news publishers.
Over the years, these platforms have entrenched themselves as the primary gateways to news, dictating visibility, controlling access to advertising revenue, and ultimately, shaping public discourse.
The Competition Commission's recently published findings highlight deep structural imbalances in the digital ecosystem that threaten the financial sustainability of journalism. If left unchecked, these imbalances could erode media diversity, press freedom, and democratic accountability.
A competition crisis
To appreciate the impact of these market dynamics, it’s essential to understand the fundamentals of competition. In a healthy, competitive market, businesses can thrive based on innovation, quality, and fair pricing. Consumers benefit from diverse choices and improved services. However, in the digital advertising and news distribution sectors, competition has become skewed in favor of a handful of global tech giants.
The digital advertising market is dominated by Google and Meta, which act as both intermediaries and competitors in the ad ecosystem. These companies control the supply and demand sides of online advertising, leaving publishers with little choice but to use their platforms. This dominance creates several anti-competitive effects:
Digital ad platforms take a large cut of advertising spend, reducing the revenue that reaches publishers.
The lack of transparent processes makes it difficult for advertisers and publishers to determine fair pricing.
Google and Meta prioritise their own ad inventory and services, disadvantaging independent publishers.
Advertisers and publishers are denied critical audience insights, reinforcing the Big Tech platforms' competitive edge.
The high costs of switching to alternative ad platforms make it nearly impossible for smaller players to compete effectively.
The result is a winner-takes-most environment where Big Tech captures the vast majority of advertising revenue, while local media outlets struggle to monetise their content. This imbalance undermines media diversity, making it harder for independent publishers to survive in an increasingly digital landscape
Proposals to level the playing field
To restore fairness and sustainability in the media industry, the Competition Commission has proposed following the following remedies:
Google must pay South African news publishers between R300–R500 million annually to account for lost value.
AI-generated summaries must not replace or reduce referral traffic to news sites. If they do, a digital levy must be imposed on Big Tech.
News publishers must have equal access to user data and insights to compete fairly in the advertising market.
Social media platforms such as Facebook, X, and YouTube must end their suppression of news content and allow news publishers to regain visibility.
Big Tech must be held accountable for spreading misinformation, particularly when algorithms amplify false or misleading content over verified journalism.
South African media outlets must be legally empowered to negotiate collectively with digital platforms to secure better terms.
If platforms fail to comply with the proposed measures, the government should consider implementing a 5–10% tax on digital advertising revenue, with funds directed toward supporting public interest journalism.
The findings of the MDPMI offer an opportunity to correct the imbalance of power in the digital economy. If meaningful reforms are implemented, South Africa can safeguard its media landscape, protect independent journalism, and ensure that technology serves the interests of the public rather than the profits of a few corporations. The future of an informed and empowered society depends on it.
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