South Africa has initiated regulatory measures against major tech companies including Meta, Google, and Alphabet Inc., penalizing them for practices deemed to stifle a competitive market. According to Bloomberg, the nation has accused firms such as Alphabet Inc.’s Google and Meta Platforms Inc.’s Facebook of engaging in anti-competitive strategies that harm local media companies.
In an effort to redress these imbalances, the Competition Commission has ordered Google to compensate regional media outlets up to 500 million rand (approximately $27 million) annually over a period of five years, arguing that its actions impede the news media’s ability to secure and monetize internet traffic.
The commission has also called on other tech giants, including Meta, X, YouTube, and ByteDance Ltd.’s TikTok, to implement measures that reduce favoritism towards foreign media while bolstering vernacular and community media, as stated in a release on Monday.
“There are market features on digital platforms that distribute news-media content that impede, distort, or restrict competition,” the group announced while presenting the results of a 16-month probe into the actions of the tech platforms.
The Commission clarified that these preliminary remedies apply solely to the South African operations of the implicated companies. Local media outlets have been struggling to stay afloat, largely because most residents have “limited scope” to pay for news, while public and community media lack subscription-based revenue models.
In a separate development, Meta recently revealed plans to build the world’s longest subsea cable and accelerate its AI innovation efforts. In a blog post released mid-February, the company disclosed that the cable for its new Waterworth Project will span more than 50,000 kilometers, around 31,000 miles, exceeding the Earth’s 24,901-mile circumference. The Waterworth Project is set to connect several countries, including South Africa, as well as the United States, India, Brazil, and others.
