In a pivotal oral submission before the Competition Commission, Media24 CEO Ishmet Davidson raised concerns about Google’s influence on South African media, asserting that the tech giant poses a significant threat to press freedom. As part of the ongoing Media and Digital Platforms Market Inquiry, this article explores the key issues discussed and their potential implications for the struggling South African news sector.
Google vs. Government: Unveiling the Threat to Press Freedom
Davidson argued that Google’s secretive control of online news distribution has left South African news publishers in a precarious position, receiving only “crumbs” due to the alleged abuse of its dominant market position. While Google claims commitment to industry sustainability, Davidson painted a bleak picture of the media landscape, describing it as an “extinction crisis.”
Media24’s Struggles: Navigating a Changing Landscape
Media24, owner of various print and digital publications, including the widely-read News24, faces financial challenges exacerbated by changing reader behaviour and a decline in advertising revenue. Despite having a substantial online readership, News24 remains unprofitable, raising concerns about the overall sustainability of the business model for South African news media organisations.
Google’s Dominance: A Double-Edged Sword
One of Davidson’s key contentions is that Google significantly influences online news distribution as an intermediary between readers and news producers. While Google claims that news content is not a major revenue generator, Davidson presented data indicating that News24 generated 5.2 billion impressions on Google last year. However, only 5% resulted in click-throughs to the publication’s site, where revenue could be generated. Despite the seemingly low click-through rate, this 5% accounts for a substantial 44% of News24’s referral traffic, underscoring its importance.
Google’s Response: Altruism or Greed?
In response, Google stated that it does not make meaningful revenue from news content through its search tool and emphasised its commitment to supporting the South African public interest news industry. Google asserted that its Google News initiative, which provides funding and training to publications, is not monetised and serves as an altruistic effort.
AI Impact: A Potential Game-Changer for News Publications
Charlene Rolls, the head of artificial intelligence at Media24, highlighted the potential impact of Google’s generative AI tools on news media publications. She expressed concerns that AI-generated responses at the top of search results could significantly reduce traffic to online news publications, posing a potential threat to the industry.
Inquiry Continues: Exploring Challenges and Solutions
The week-long inquiry will continue to explore the challenges faced by South African news publishers, with more oral submissions expected from various platforms, including Google and Meta. The overarching goal is to gain a better understanding of the evolving dynamics of online news distribution and assess whether intervention is necessary to address anti-competitive behaviour by digital platforms. Stay tuned for further insights into the future of South African media in the digital age.
