- South Africa's Competition Commission has penalized technology giants including Alphabet Inc.'s Google (NASDAQ:GOOGL) and Meta Platforms Inc (NASDAQ:META).'s Facebook (NASDAQ:FB) for anti-competitive practices, according to Bloomberg News. The authority stated these practices were detrimental to local media companies.
The watchdog suggested that Google should pay local news outlets up to 500 million rand ($27 million) each year for a period that could extend to five years. The Commission stated that Google's conduct obstructs the news media's ability to secure and monetize digital traffic.
The Commission's report is the result of a 16-month investigation into the conduct of these tech platforms. However, this report is not final. The involved parties have a six-week period to make submissions before a final report is published in four to five months. The African operations of Google and Meta have not responded immediately to requests for comment.
The Commission has also directed Meta to cease the practice of deprioritizing news on its Facebook platform. This move is seen as a part of the larger effort to ensure fair competition and the survival of local media outlets.
The penalties imposed on these tech companies signify the increasing scrutiny faced by technology giants worldwide. This comes amid growing concerns about their market dominance and the impact on smaller businesses and the media industry.