South Africa’s Competition Commission says Google will pay $40.2 million to support local media after an inquiry found reduced visibility and declining referral traffic.
Google has agreed to provide $40.2 million in support to South African news outlets following findings that its search practices reduced monetisation opportunities traditionally relied upon by media organisations, according to a report from THECABLE.
The South African Competition Commission (CompCom) announced the agreement in its final inquiry report published on Thursday. The inquiry concluded that Google, alongside other global platforms such as Meta and Microsoft, dominates the main gateways through which South Africans access information. It found that news content accounts for 5–10 percent of search queries and significantly drives advertising-based engagement.
The report stated: “Google does however not compensate South African media for the news content it displays or summarises. Referral traffic to media websites has declined sharply as users increasingly consume AI-generated summaries or remain on Google’s own platforms.” It added that Google’s algorithms favour large foreign outlets over local or vernacular media, widening visibility and revenue gaps.
CompCom said negotiations with Google and YouTube lasted two months, resulting in a “comprehensive package of remedies” aimed at restoring fairness in the media ecosystem. The $40.2 million package will fund national, community, and vernacular outlets through licensing, innovation grants, and capacity-building programmes.
The agreement also includes new tools prioritising local news, technical support, improved data-sharing, and plans for an African News Innovation Forum.
The report noted that Microsoft exhibited similar foreign-outlet bias and will now extend MSN contracts to five additional South African publishers.