US search giant Google has denied claims by South Africa’s Competition Commission that it has extracted disproportionate value from South African news publishers, thereby contributing to the local news media’s decline.
In a provisional report stemming from its the 16-month-long media and digital platforms market inquiry, published on Monday, the commission said Google’s “monopoly position” and the unequal bargaining power of the media mean there has not been an equitable share of value between the US Big Tech firm and news publishers in South Africa.
According to the report, this inequity has materially contributed to the erosion of the news media in South Africa over the last decade and a half – and will continue to do so unless remedied.
“It is apparent that the value derived by Google from the relationship with the news media far exceeds that derived by the news media, and Google’s conduct around zero clicks destroys potential additional value for the news media. If this were to be an equitable relationship, then the value would be shared equally,” said the commission’s provisional report. Zero-click behaviour refers to users who get the information they need via Google without clicking though to the source website.
But Google told TechCentral on Tuesday that the commission has understated the value it brings to the table through its products and other initiatives involving local media.
“We disagree with the claim that Google has taken disproportionate value from publishers. In 2023, our products like Google Search and News generated an estimated R350-million in referral traffic value for South African publishers while we earned less than R19-million from ads displayed next to news queries,” a Google spokesman told TechCentral.
‘Self-preferencing behaviour’
“Alongside this, we have invested in products, training and partnerships to support publishers and the broader news ecosystem, and we will continue to do so.”
The commission’s report estimates the total value of the news to Google Search and Google Discover for 2023 at between R800-million and R900-million in revenue. These values do not include the additional R100-million to R200-million of value that Google allegedly derives from YouTube revenue share for news video referrals, or the R200-million to R300-million allegedly made by Google AdTech for all traffic to news publishers.
The commission estimated the disproportionate value extracted from South African publishers at between R300-million and R500-milion in 2023 and recommended that Google pay up to R500-million/year to correct what it has described as the “imbalance in shared value while putting in place changes to search that will sustainably create shared value with the media through increases in referral traffic”.
Read: South Africa hits Google with R500-million demand for news media
One of the ways in which the commission has accused Google of deriving disproportionate value from news publishers is through the company’s alleged “self-preferencing behaviour” in search results. According to the provisional report, YouTube has in the past year accounted for some 60-70% of all video impressions on Google’s Discover page and around 10-15% of all impressions. The South African news media has a share of around 5-10% on Discover, the regulator said.
The commission further accused Google of using its “monopoly” in internet search to transfer to the news media some of the risks and costs associated with improving its own search business. Google is said to have used the desire by companies, including media outlets, to rank high in search results to outsource the improvement of search through search engine optimisation initiatives that these companies pay for themselves. This work improves the speed of search and the quality of the content delivered, benefitting Google at the media’s expense.
The commission was also critical of strategies Google uses to limit its tax liability in South Africa. According to the provisional report, these funds represent an opportunity cost that would directly benefit South Africans should this money be directed to local news media instead of being taken offshore. The commission is considering the implementation of a digital tariff amounting to 5% of Google’s revenue beginning in 2026. A 5% tariff on Google’s revenues would amount to between R400-million and R500-million, meaning the tax savings made by Google roughly equate the value imbalance with the news media in South Africa, the commission said.
Read: Google voices support for SA news media amid plan for Big Tech fund
“While not directly linked to the value imbalance with the news media in South Africa, it is informative to understand the loss of value to the country from the tax arrangements of Google, and how this compares to redistribution of value to the news media,” said the report.
Google told TechCentral that it will study the commission’s report in detail before giving a more elaborate response to its findings. – © 2025 NewsCentral Media
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