Google takes issue with Competition Commission market inquiry report

Google has taken issue with several of the recommendations the Competition Commission of South Africa has laid out in the Media & Digital Platforms Market Inquiry (MDPMI).

The Commission published the non-confidential version of Google’s response to its provisional report on the MDPMI last week.

Anti-competitive practice

In February this year, it published its provisional report on the MDPMI, with Google in particular being looked at for how it engages with local publications and how it drives users to the news.

It found the tech giant guilty of anti-competitive practices and stated that it could be required to pay up to R500 million a year in compensation to South African media outlets.

“Google’s monopoly position and the unequal bargaining position of the media means there has not been an equitable share of value between Google and news publishers in South Africa both historically and currently.

“This inequity has materially contributed to the erosion of the media in SA over the past fourteen years and will continue to do so unless remedied,” the Commission outlined in February.

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Google responds

Some of the key points taken from the full version of Google’s submission state that the commission does not take into account the fact that the way people access news has changed.

“We search, stream and scroll across multiple sites, platforms and screens to understand what’s going on in our communities and around the world.

“The SACC’s proposed remedies put a disproportionate burden on Google. As well as ignoring the change in consumer behaviour, the Commission’s recommendations would force one platform to compensate news publishers for the inadequate referral traffic they get from social media sites,” Google said.

‘Restricting innovation’

Google said the commission is also restricting innovation in South Africa.

“The Commission’s idea for how to modify specific AI [Artificial Intelligence] products would break innovative features like AI Overviews and Gemini, both of which have been helping people in South Africa more easily learn about complex topics.

“Not only would this limit South Africans’ access to knowledge openly available elsewhere in the world, it could create conditions detrimental to future investment and innovation in the market,” Google said.

Collaboration

In March, Google said it would continue to collaborate with the industry and the Competition Commission to find balanced solutions for the news ecosystem’s future, and to invest in tools that help all publishers adapt and innovate.

The commission set up an inquiry at the end of 2023 following concerns that some market features in digital platforms that distribute news media content might restrict, distort or impede competition.

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