MDPMI provisional report findings against tech giants - Google, Meta, Microsoft, OpenAI, X, TikTok

The Media and Digital Platforms Market Inquiry (MDPMI) has released its provisional report, with a series of provisional findings against tech giants including Google, Meta (Facebook), Microsoft, OpenAI, X (formerly Twitter), and TikTok.
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Provisional remedies across search, social media, generative AI, and digital advertising to address conduct that adversely impacts competition for digital advertising and journalism in South Africa has also been released.

The report follows 16 months of research, public and private hearings, expert submissions, industry consultations, consumer surveys, and focus group discussions.

These provisional findings and remedies only apply to South African operations for global and domestic companies.

The Inquiry has considered the difficulties faced by the media bargaining solution in other markets and has sought to find alternative win-win solutions that are sustainable long-term.

In many cases, the Inquiry has presented the outcomes it wishes to see whilst giving space for platforms to see how best this can be achieved.

Purpose of the inquiry

The inquiry, conducted under section 43B(1)(a) of the Competition Act 89 of 1998, was launched due to concerns that digital platforms distributing news media content may be restricting competition or undermining the objectives of the Act.

Unlike similar initiatives in other countries, this inquiry has a broader scope, examining the role of radio, television, artificial intelligence (AI) chatbots, AI-driven search, and the AdTech industry in shaping the news media landscape.

Provisional findings and remedies

The report presents provisional findings against major technology companies, including Google, Meta (Facebook), Microsoft, OpenAI, X (formerly Twitter), and TikTok.

The proposed remedies, applicable to South African operations, address anti-competitive practices affecting digital advertising and journalism.

Key proposals include:

  • Google

    • Google to compensate South African news media between R300 and R500 million annually over three to five years and adjust its search algorithm to increase referral traffic, promote vernacular and community media, and remove search bias favouring foreign media and YouTube.

  • Meta

    • Meta to stop deprioritising news content in Facebook’s feed and restore referral traffic to media outlets by at least 100%. Meta and X must cease downranking posts containing news links.

  • YouTube

    • YouTube to increase revenue shares for media and broadcasters, including the SABC, to seventy percent and promote direct ad sales by media outlets.

  • Social media platforms

    • These platforms are to compensate media organisations for fact-checking services and introduce liability for amplifying misinformation through an amendment to the Electronic Communications and Transactions Act of 2002.

  • Search and social media platforms

    • these platforms are to provide news publishers with anonymised audience data to support better audience monetisation.

  • AI companies

    • To allow news organisations to negotiate collectively for content licensing to train chatbots, with safeguards to prevent AI models from favouring select global media partners.

  • AdTech industry

    • This industry is to implement competition remedies already adopted in the European Union and US, reduce fees, and eliminate self-preferencing practices, such as exclusive access to YouTube inventory.

Challenges facing the media industry

The media industry is undergoing significant disruption due to the shift to online news consumption, leading to declining traditional advertising revenue.

While some outlets have adopted subscription models, digital ad revenue remains insufficient.

In South Africa, financial difficulties have forced many commercial, community, and public media organisations to downsize or close, particularly outside major urban areas.

Limited public willingness to pay for news further threatens media diversity and access to information.

The inquiry finds that these challenges are worsened by digital platforms restricting the ability of news media to generate and monetise digital traffic.

Next steps

The findings and recommendations remain provisional, with further stakeholder engagement and evidence submission potentially influencing the final report.

The public and affected parties have until 7 April 2025 to submit responses to az.oc.mocpmoc@impdm, including supporting evidence where applicable.

The final report will be published later in the year after reviewing all submissions.

The full provisional report is available at here.


 
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