Why South Africa asked Google to pay $40 million to news outlets

South Africa’s Competition Commission announced on Thursday that Google will provide more than $40 million to support the country’s struggling news media, following a 16-month investigation into the tech giant’s impact on local journalism. Regulators have increasingly scrutinised platforms such as Google, TikTok, X, and Facebook over practices that limit local media’s ability to distribute and monetise content, according to report.

The investigation found that Google Search and YouTube algorithms favoured international news, putting South African publishers at a disadvantage. In February, the commission recommended payments of up to $27 million annually for five years. The final agreement, however, set a 688 million-rand ($40.4 million) package to support local journalism and digital transformation.

Funding allocations and technical support

Under the settlement, $4 million will go to national publishers and broadcasters over five years for Google News content, while $2.6 million annually will support AI innovation in media. Community and small media outlets will receive $2.2 million over three years to aid digital transformation, including website development and enhanced online visibility.

In addition to financial support, Google will provide technical assistance to improve website performance, offer new user tools to prioritise South African news, and share audience data with publishers. YouTube will also support monetisation for local creators, and algorithmic adjustments will address bias favouring foreign content.

Global trend and other platforms

South Africa is not alone in pushing for such arrangements. Countries including Taiwan, Canada, Australia, and the United States have reached similar funding deals, reflecting a global effort to ensure that domestic journalism can survive in the digital age.

TikTok has agreed to provide tools for media to insert links within videos for off-platform monetisation. Meanwhile, X, owned by South African-born billionaire Elon Musk, has not reached a settlement and has been ordered to make all monetisation programmes available to local publishers and provide training workshops. The directive can still be appealed.

Impact on local journalism and sustainability

Regulators argue that without intervention, local news organisations remain at a competitive disadvantage. “South African media, especially small and community outlets, have struggled to compete with international content that dominates search and social feeds,” the commission said. By enforcing funding and technical support, authorities aim to ensure local journalism remains accessible, financially viable, and diverse.

The deal also reflects broader concerns about the influence of tech platforms on global media ecosystems. As traditional revenue streams for newspapers and broadcasters decline, government intervention is increasingly seen as necessary to preserve journalistic independence and local reporting. Observers note that the South African case may set a precedent for other countries seeking to address algorithmic bias and support domestic news in the digital age.

With inputs from agencies