Fake news now included in Media and Digital Platforms Market Inquiry

The Competition Commission has included fake news and five other themes in the Further Statement of Issues in its Media and Digital Platforms Market Inquiry after a review of the first range of submissions from media, digital platforms, publishers, broadcasters and associations.

The inquiry stems from concerns that market features in digital platforms that distribute news media content and associated Adtech markets can restrict, distort, or impede competition and potentially have a negative effect on the South African news media sector.

The six themes include:

• the incorporation of constitutional interpretation into the inquiry;
• the impact of mis- and disinformation;
• the emphasis on radio and TV broadcast news media and especially the public broadcaster;
• the measurement of news and its benefit to search and social media platforms;
• revenue share arrangements between news media and digital platforms; and
• the role and importance of transparency in platforms and advertising technology (Adtech) markets.

The commission launched the inquiry on 17 October 2023 in terms of section 43B(1)(a) of the Competition Act to scrutinise the distribution of media content on South African digital platforms and the Adtech markets that link buyers and sellers of digital advertising inventory.

During the first phase of information gathering stakeholders tackled the initial questions and themes and after reviewing these initial submissions, the inquiry identified the six additional themes.

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Inquiry seeks detailed information on 6 new themes

The inquiry wants stakeholders to submit detailed information on the six new themes to inform its process, evidence gathering, findings and remedial actions. The strength of these submissions can be enhanced if stakeholders and market participants provide reasons and corresponding evidence.

James Hodge, chief economist and acting deputy commissioner of the commission, who will lead the inquiry, outlined the focus areas at the launch and pointed out that media consumers increasingly rely on video-sharing platforms, news aggregators and social media to access news and generate revenue, creating a need to promote diversity in news and public interest journalism.

The inquiry plans to conduct two rounds of information gathering, with public hearings scheduled for March 2024. The terms of reference, statement of issues, administrative timetable and guidelines for participation are available on the inquiry website.

It comes after numerous global inquiries and investigations led by competition authorities regarding the impact of digital platforms on news media publishers, particularly in terms of advertising revenue generation and the sustainability of quality news content.

Investigations in other countries highlighted the significant role large digital platforms, such as search engines and social media sites, play in news content distribution and potentially affect referral traffic and fair content payment.

These global investigations also examined the Adtech markets and the potential for competition concerns arising from concentration and conflicts of interest.