Google Agrees to Pay $40 Million to Support South African News Media Following Regulatory Intervention

The Competition Commission's directive remains subject to appeal.

South Africa's competition authority announced Thursday that Google has committed to pay over $40 million to support the country's struggling news media organizations in the digital era.

Various tech giants including TikTok, X, and Facebook have faced criticism for anti-competitive practices that the watchdog claims damage local media by restricting their ability to distribute content digitally and generate revenue.

Following a 16-month investigation revealing Google search algorithms favored international news over local sources, the Competition Commission initially recommended in February that Google pay up to $27 million annually for five years.

However, the California-headquartered company ultimately agreed to a funding package totaling 688 million rand ($40.4 million), as stated in the commission's final report released Thursday.

The agreement allocates $4 million over five years to national publishers and broadcasters for Google News content, while $2.6 million will be provided annually to support innovations in artificial intelligence.

Additionally, $2.2 million will be distributed over three years to community and small media outlets to facilitate their digital transformation efforts.

"Google will also introduce new user tools to prioritize local news sources, provide technical assistance to improve website performance, share enhanced audience data," the commission stated, adding that YouTube has also committed to supporting monetization opportunities.

The tech platforms have also pledged to eliminate algorithmic bias that previously favored foreign media outlets.

Similar funding arrangements have been established in other countries including Taiwan, Canada, Australia, and the United States, as governments increasingly pressure tech companies to implement regulations mandating such agreements.

Meanwhile, Chinese social media platform TikTok has agreed to provide new tools, including functionality allowing media organizations to insert links within videos to monetize off-platform content.

Social media platform X, owned by South African-born billionaire Elon Musk, did not reach a settlement and has been ordered to make all monetization programs available to local publishers and to conduct training workshops.

The Competition Commission noted that this directive may be appealed.