Caxton appeals to MDPMI for action on Google and Meta.
Caxton and CTP Publishers and Printers Limited have made a powerful plea to the Media and Digital Platforms Market Inquiry (MDPMI), warning of the existential threats posed by the dominance of global tech giants Google and Meta on South Africa’s news industry.
In a detailed submission, the company highlighted how these platforms’ market power has created significant barriers for local news publishers, threatening journalism’s financial sustainability and its role as a pillar of democracy.
The submission says for over 45 years, Caxton has been a cornerstone of the South African media landscape, publishing more than 100 local newspapers and 50 news websites, including the national daily The Citizen.
However, the company says it has struggled with declining advertising revenues, a challenge exacerbated by the shift from print to digital.
This transition has been particularly difficult for local news outlets, which lack the resources to compete in a digital ecosystem increasingly dominated by Google and Meta.
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Caxton’s submission outlines how these platforms have fundamentally disrupted the traditional news business model. By controlling key parts of the digital advertising ecosystem — known as the ad tech stack — Google and Meta have positioned themselves as gatekeepers, benefiting disproportionately from the content created by local publishers while offering little in return.
Caxton accuses these platforms of operating from tax havens, avoiding South African tax obligations, and failing to comply with broad-based black economic empowerment (BBBEE) regulations. The company argues that this allows them to profit from local journalism without contributing meaningfully to its sustainability.
Caxton warns that the continued erosion of local journalism could lead to “news deserts,” depriving many communities of access to reliable and relevant information.
This would deepen inequalities and undermine the democratic process, which relies on an informed citizenry.
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In making its case, Caxton has called for urgent intervention to level the playing field. It urges the MDPMI to enforce fair revenue-sharing mechanisms to ensure platforms like Google compensate local publishers for the value they derive from news content. The company also advocates for stricter tax and BBBEE compliance enforcement on global tech giants operating in South Africa. Moreover, it highlights the need for policies that support local journalism, particularly in underserved communities where the risk of news deserts is greatest.
The submission draws on global precedents, referencing regulatory actions in countries like Australia, the United Kingdom, and the United States, where authorities have sought to curb the dominance of digital platforms.
It also notes how international publishers, bolstered by lucrative deals with platforms like Google, now pose an additional challenge to South African outlets, further exacerbating the competitive imbalance.
At the heart of Caxton’s argument is the belief that journalism is not just a business but a public good that underpins democracy.
The company warns that without immediate action, the dominance of digital platforms would continue to stifle the diversity of voices in the media, diminish public access to credible news, and erode the financial viability of local journalism.
This article was republished from Moneyweb. Read the original here.
