South Africa's Competition Commission Investigates Unfair Advantage in Digital Content

The Competition Commission of South Africa has launched a 15-month exploration into unfair advantages held by digital platforms, signalling the start of a competitive media struggle within the country. The probe, christened the Media and Digital Platforms Market Inquiry, was announced on October 17 amidst concerns over the market practices of some of the largest digital platforms like Google, TikTok, YouTube, and Facebook.

Commissioner Doris Tshepe outlined that the media space in South Africa is at a crossroads, with audience consumption patterns shifting rapidly from traditional formats to digital outlets. As such, the viability of traditional print and broadcast advertising is dwindling. The platforms in question often act as gateways for consumers, dictating winners and losers in the fierce contest for audience attention.

Journalist and entrepreneur Paula Fray, a panel member for the probe, highlighted the severe implications that the 2020 Covid-19 pandemic had on the media sector. She noted the sector's battle with dwindling print advertising and readership had been further complicated by the pandemic, resulting in lost jobs and pay cuts. Furthermore, shrinking resources have impacted the quality of journalism and the ability to produce in-depth, comprehensive reporting.

With the constant evolution of digital platforms, the media industry has to pivot to survive amidst these challenges. Disruptions from artificial intelligence, a rapid stream of information, and economic pressures are adding to the growing complexities faced by media houses. The challenge to press freedom and quality journalism after the post-Covid era, coupled with the need for sustainable business models, makes this inquiry timely.

The industry-wide assessment led by Chief Economist and Acting Deputy Commissioner of the Commission, James Hodge, will also cover aspects of print and televised media. This is a nod to the growing alignment of news broadcasters with video-sharing platforms and other digital arenas for content distribution and income generation.

This inquiry aligns with international efforts by competition authorities worldwide, analyzing the effects of digital platforms on news media publishers, specifically in terms of advertisement revenue and the sustainability of quality news content.