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The relationship between South Africa’s major publishers and Google has turned hostile and may trigger an aggressive face-off between the parties as the Competition Commission’s Media and Digital Platforms Market Inquiry (MDPMI) gains momentum.
The hostility comes after protracted negotiations last year between Google and individual publishers – seeking to reach commercial agreements for Google’s use of their news content – hit a brick wall. According to several sources, Google’s final settlement offers were insulting, and the industry believes Google negotiated in bad faith.
Read: Why Facebook and Google cannot be trusted
Following the collapse of the negotiations, JSE-listed Caxton and Naspers-owned Media24, together with the Campaign for Free Expression (CFE), an organisation set up to protect press freedom in South Africa led by journalism veteran Professor Anton Harber, went on the offensive.
They sent letters to Google stating that its dominance in the digital space has distorted the South African media landscape to such an extent that it threatens the financial viability of the sector and freedom of the press.
They request that Google disclose information about its local operations and precisely how much money it makes from aggregating its news content, which they deem critical to ensure that any future negotiations are fair and on a level playing field.
However, Moneyweb can confirm that Google has refused to disclose any information, which turns the MDPMI into a beachhead for future engagements.
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