Competition Commission starts Inquiry into media and digital platforms

The Competition Commission today launched its Inquiry into media and digital platforms to scrutinise how media content is distributed on South African digital platforms, as well as the advertising technology (Adtech) markets that link buyers and sellers of digital advertising.

“The Inquiry comes at a critical moment for the media industry as news consumption rapidly shifts online and traditional sources of funding for print and broadcasting advertising decline,” said Commissioner Doris Tshepe.

James Hodge, chief economist and acting deputy commissioner of the Commission, will lead the Inquiry along with Paula Fray, an esteemed veteran South African media practitioner with experience locally and abroad. She has served as executive news editor of The Star and editor of the Saturday Star, as deputy press ombud and as public representative on the SA Press Council.

“These challenges are driven by technological disruptions most recently, such as artificial intelligence, social media-fueled pressures to tell stories faster amid a tsunami of misinformation and disinformation, online harassment, global challenges, such as the war in Ukraine, economic pressures, reduced newsroom resources post-Covid and challenges to press freedom and freedom of information,” pointed out Paula Fray.

Inquiry: need to diversify news and public interest journalism

Hodge outlined the focus areas and pointed out that media consumers increasingly rely on video-sharing platforms, news aggregators, and social media to access news and generate revenue, creating a need to promote diversity in news and public interest journalism.

The Inquiry released a Statement of Issues and Requests for Information (RFI) today to platforms, Adtech companies, and media organisations after the publication of the final Terms of Reference in September.

During this initial phase, the Inquiry plans to conduct two rounds of information gathering, with public hearings scheduled for March 2024. The Terms of Reference, Statement of Issues, Administrative Timetable and Guidelines for Participation are available on the Inquiry website.

All interested stakeholders and the public are encouraged to submit their input on the Statement of Issues by 14 November.

Digital platforms crucial to reach consumers

“The distribution of news content through digital platforms has become a crucial means for news media businesses to reach consumers, leading to greater reliance on these platforms over time,” Hodge said.

“This shift affects the cost and revenue structure of South African news media businesses, with traditional classifieds and print advertising revenue decreasing, while digital advertising revenue increased.”

The Inquiry will primarily concentrate on key digital platforms, including search engines, social media sites, video-sharing platforms, and news aggregation platforms, as well as Adtech market participants on the supply and demand sides, as well as Ad exchanges.

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In addition, the Inquiry will adopt a forward-looking perspective to evaluate how the integration of emerging technologies on digital platforms – such as generative AI search assistance like ChatGPT – will affect enterprises within the South African news media industry.

The Inquiry’s scope is limited to businesses in the South African news media sector, including news publishers and broadcasters.

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