Why the CompCom wants Google to pay up

The Competition Commission is girding itself for a fight with Big Tech companies like Google and Meta Platforms after publishing its provisional findings in its investigation into the impact that Big Tech has had on the South African news media sector. To unpack the provisional report, which was published on Monday, Competition Commission senior analyst and technical lead Donnavan-John Linley joined the TechCentral Show to discuss on the findings. He chats about how the commission is attempting to assist local publishers deal with the rise of competing social media platforms owned by US tech giants and why the regulator is determined to intervene in the market to support the funding of journalism in South Africa in the digital age. Linley tells TechCentral editor Duncan McLeod about: • Why the Competition Commission decided to initiate its probe into digital platforms and their impact these platforms are having on South Africa’s news media; • The findings contained in the provisional report and why the commission reached the conclusions it did – including its recommendation that Google pay as much as R500-million/year in “compensation” over a three- to five-year period in an effort to level the playing field; • The likely reaction from Big Tech to the commission’s proposals, and what might happen if they don’t agree to play ball; • The risk of provoking a backlash from the Donald Trump administration – already Trump has accused the EU of using antitrust fines levied on US tech companies as a form of taxation and threatened retaliation in response; • How the proposed compensation of the local news media might work, and who would be eligible to receive the funding from Google; • The impact of artificial intelligence on the South African media industry and how the commission has dealt with this in its provisional report; and • Whether the commission’s findings amount to regulatory overreach – are the proposals it has made really warranted, or is the media industry simply experiencing capitalism’s “creative destruction” that will ultimately drive innovation in news media? Don’t miss a great interview!