Google and Meta are facing significant penalties for anti-competitive behavior towards South African news media, as revealed by the country’s Competition Commission. The Commission's preliminary findings suggest that Google’s search algorithms have favored international news sources over local ones, leading to a detrimental impact on South African media outlets. This disparity has been cited as a major factor contributing to the decline of the local media landscape over the past 14 years. As a result, the Commission has proposed that Google pay between 300 million to 500 million rand (approximately $16.3 million to $27.29 million) annually for a period of three to five years to compensate local news organizations.

The investigation into Google's practices has highlighted how its algorithms skew competition, making it difficult for local language and community media outlets to gain visibility in search results and trending stories. The Competition Commission noted that this inequity has materially harmed the South African media industry, which has struggled with declining revenues as advertising dollars increasingly shift towards digital platforms. The Commission's recommendations aim to address these challenges by ensuring that tech giants like Google provide fair compensation to local publishers for their content, which drives user engagement and advertising revenue on these platforms.

In addition to financial compensation, the Commission has urged Google to implement changes to its search functionality that would enhance referral traffic for South African media outlets. This includes removing any bias in favor of foreign media and promoting local vernacular and community news sources. The final report from the Competition Commission is expected later this year, with all parties involved required to submit supporting evidence by April 7. Google has stated its intention to review the report thoroughly but has contested the assertion that it disproportionately benefits at the expense of local publishers.

Meta is also under scrutiny, with recommendations for it to cease deprioritizing South African news media posts on its platforms. The Competition Commission has called for improved monetization opportunities for news organizations on platforms like YouTube, urging an increase in revenue share to ensure that local publishers can sustain their operations amid declining advertising revenues. If these companies fail to comply with the proposed remedies within six months after the final report, they may face a digital advertising tariff or levy ranging from 5% to 10%. The situation underscores a growing global trend where regulators are seeking to hold tech giants accountable for their impact on local media ecosystems.