Google has accepted a settlement requiring it to provide financial and technical support worth $40.2 million to South Africa’s news sector.
Gatekeepers News reports that the arrangement follows a review by the Competition Commission, which concluded that Google’s practices had weakened revenue opportunities that news outlets previously relied on.
The agreement was outlined in the commission’s final report released on Thursday. The document explained that the investigation determined Google, alongside other large global platforms such as Meta and Microsoft, controls the main digital pathways through which people in South Africa access information.
The inquiry further established that news content makes up a notable portion of Google searches, helping generate advertising income for the company.
According to the report, 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.
The report added that Google’s algorithmic structure tends to favour large foreign outlets over local or vernacular media, deepening inequality in content visibility and advertising reach.
The SABC relies heavily on YouTube for content distribution but earns minimal revenue-share compensation. 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.
The commission said the settlement was reached with Google and YouTube after extensive engagement and two months of negotiations, resulting in a set of measures intended to strengthen transparency, fair access, and long-term sustainability in the national media space.
The $40.2 million package (688 million rand) will be directed toward local, community-based, and indigenous-language outlets through content licensing, innovation funding, and training programmes.
Google is also expected to roll out tools that elevate South African news sources in search results, offer technical guidance to help publishers optimise their platforms, provide better audience insights, and launch an African News Innovation Forum.
The inquiry also reported that Microsoft’s MSN service showed a similar preference for international publishers, with limited involvement of local organisations. As part of the remedy, Microsoft will expand its MSN partnerships to include five additional South African publishers.
