Google is set to pay over $40 million after South Africa found its algorithms reduced visibility and revenue for local media.

Google has agreed to pay more than $40 million to support South African news organisations after a landmark inquiry by the Competition Commission (CompCom) found that the tech giant had reduced monetisation opportunities that traditionally sustained the country’s media industry.

CompCom announced the payment in its final report, released on Thursday, detailing how global digital platforms led by Google have reshaped how South Africans access information.

According to the Commission, the inquiry found that Google, alongside major platforms such as Meta and Microsoft, “dominates key gateways through which South Africans access information.”

The report said Google holds a particularly powerful position in the digital ecosystem, noting that “news represents 5–10 percent of queries and drives user engagement that is monetised through commercial advertising.”

But despite that reliance on news content, the Commission found that local media houses were not being compensated.

“Google does however not compensate South African media for the news content it displays or summarises. Referral traffic to media websites has declined sharply as users increasingly consume AI-generated summaries or remain on Google’s own platforms,” it said.

The report further criticised the platform’s search architecture, saying:

“Google’s algorithmic structure tends to favour large foreign outlets over local or vernacular media, deepening inequality in content visibility and advertising reach.”

Broadcasters were found to be equally affected.

“The SABC relies heavily on YouTube for content distribution but earns minimal revenue-share compensation,” the Commission noted.

It also raised concerns over the wider information environment shaped by social media dynamics, warning that:

“Social media algorithms also foster the spread of misinformation and disinformation by promoting sensationalist material over credible sources, imposing social costs that the media must absorb in combating fake news.” (ARISE NEWS)