Competition Commission says tech companies continue to undercut SA's media
The commission set up an inquiry at the end of 2023 following concerns that some market features in digital platforms that distribute news media content might restrict, distort, or impede competition.
WhatsApp and Facebook. Picture: Pixabay.com
JOHANNESBURG - The Competition Commission says big tech continues to undercut local media as audiences turn to Google and Meta, formerly named Facebook for the day’s big stories.
The commission set up an inquiry at the end of 2023 following concerns that some market features in digital platforms that distribute news media content might restrict, distort, or impede competition.
South Africa's news media was worried that this could have a harmful effect on the sector.
Following public hearings, the commission launched the provisional report into the Media and Digital Platforms Market Inquiry in Tshwane on Friday.
READ: SANEF urges Competition Commission to ensure SA media houses are paid fairly for content
Following a survey on news consumption in the country, the Competition Commission found that more than 70 percent of consumers rely on social media as a primary news source, with an astounding 84 percent of these individuals accessing news on Meta.
After Meta, follows TikTok, WhatsApp, YouTube, and X.
This means local media that depend on traffic on their websites for revenue fall behind.
"As a result, the news earns very little for billions of views," said media veteran and panelist on the inquiry, Paula Fray.
In its findings, the commission has warned that the emergence of AI chatbots may also add to the financial strain on media companies and undermine the integrity of news institutions, making it harder for local publications to survive.