The release of the Competition Commission’s report detailing the findings of its Media and Digital Platforms Market Inquiry — a probe which sought to outline the impact of multinational technology giants such as Google and Facebook on the sustainability of local media — has been delayed once again, this time to 2025.
The report was initially expected in November, but the commission extended its release to December – and has now bounced it into next year. It cited the need to “meet the highest accuracy, thoroughness and credibility standards” as reason for the delay.
“The inquiry was initiated because the commission has reason to believe that there are market features on digital platforms that distribute news media content that impede, distort or restrict competition, or undermine the purposes of the [Competition] Act, and which have material implications for the news media sector in South Africa. The revised timeline reflects the inquiry’s dedication to addressing critical factors essential to the report’s quality,” the Competition Commission said in a Thursday statement.
Public hearings for the inquiry kicked off in March, where various media industry stakeholders presented to the commission. Then-Media24 CEO Ishmet Davidson told the Competition Commission that Google is sucking advertising revenue out of South Africa, making it increasingly difficult for local publications to survive. He said even News24, despite its size, is loss making – and he pointed the finger at Google and rival Meta Platforms, the owner of Facebook, for the dire situation facing local publishers.
Davidson said News24 was “forced” in 2020 to implement a paywall around much of its content, though the revenue from subscriptions “has not nearly been sufficient to offset the decline in advertising revenue”.
But financial issues were only part of the issues at play. The South African National Editors Forum (Sanef) called for Big Tech platforms to be held accountable for the content they distribute in much the same way South African publications are held to an editorial standard.
Media support fund
“News producers are legally liable for the content they produce, but as Big Tech you can dodge responsibility by saying it is third-party content and not yours, even though they make money from it,” said Guy Berger, director for freedom of expression and media development at Unesco and a former head of the School of Journalism at Rhodes University.
In a June interview with TechCentral, prior to performing additional “off-camera” interviews with industry experts and other stakeholders, senior Competition Commission analyst Noluthando Jokazi said the commission was mulling the creation of a media support fund that would be contributed to by Big Tech – a move favoured by competition authorities in Canada, Australia and elsewhere with mixed success.
According to the commission, some of the factors contributing to the delay in the publication of the report include:
- Further consultations with experts, who were consulted to resolve emerging questions and address unresolved issues;
- Stakeholders’ expectations for a credible and detailed document;
- The complexity of the submissions in areas such as ad-tech and AI, each requiring a detailed analysis to ensure accuracy; and
- Expert contributions requiring specialised scrutiny to ensure accurate interpretation in the report.
Read: Media24 blasts Google – the Fourth Estate is ‘on its knees’
“The provisional report must be subjected to internal Competition Commission review processes and decisions, which have also impacted the original timeline. It will include initial findings, remedies and recommendations, and will allow for six weeks of stakeholder comments,” the Competition Commission said. – © 2024 NewsCentral Media
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