Google has refuted claims of substantial revenue generation from news content, citing figures from 2022 that indicate news queries account for less than 2% of total search query volumes in South Africa. Marianne Erasmus, Google News partner lead for sub-Saharan Africa, presented the company’s perspective to the Competition Commission during its inquiry into media and digital platforms.
Contrary to media houses’ portrayal of Google’s approach as exploitative, Erasmus emphasized the contributions the tech giant has made to the local news ecosystem. She stated that Google made only R35 million (US$1.9 million) in ad revenue from its News product in 2022. In addition, Erasmus highlighted that Google sent over 600 million free referral clicks to local publishers during the same period, which could be monetized through subscriptions and advertising.
Erasmus defended Google’s intention to build durable partnerships with the news industry, focusing on fostering a sustainable, resilient, and diverse news ecosystem. She pointed to initiatives such as The Digital News Initiative and News Labs, launched in 2015, aimed at supporting publisher innovation and providing digital skills to journalists. The Google News Initiative, launched in 2018, included products and programs to help publishers better monetize their businesses.
Despite these claims, experiences shared by publishers within Google’s ecosystem during the inquiry conflicted with the positive image presented by Erasmus. Last week, Moneyweb editor Ryk van Niekerk criticized Google’s “take it or leave it” approach and described the company’s frequent and abrupt changes to its search engine algorithm, incurring additional costs for publishers.
Media24 CEO Ishmet Davidson accused Google of abusing its market dominance, threatening the viability of the Fourth Estate in South Africa. Davidson claimed that Google’s extraction of advertising revenue made it challenging for local publications to survive, even leading to losses for large platforms like News24.
During the inquiry, acting deputy commissioner James Hodge criticized Google’s representatives for their “extreme attitude” and “unwillingness to accept even the smallest bit” of the accusations. However, Google MD for News and Books partnerships in the Middle East and Africa, Sulina Connal, countered by expressing the company’s willingness to engage and be part of the solution. Connal urged policymakers to acknowledge Google’s substantial and tangible investments in the news sector. The ongoing debate raises questions about the relationship between tech giants and the news industry, with both sides presenting divergent perspectives.