In the digital age, the relationship between tech giants like Google and news publishers has come under scrutiny. South Africa has joined the growing chorus of countries demanding transparency from Google regarding its dealings with news organizations.
Caxton, a prominent media organization in South Africa, along with the Centre for Free Expression, has taken legal action against Google, seeking answers to a series of questions about the information and revenue generated from news publishers.
The crux of the matter lies in the nature of programmatic advertising, which, according to Caxton chairman Paul Jenkins, fails to distinguish between genuine news and disinformation, or real users and click farms. This indiscriminate approach has led to concerns that journalism is under threat, as news organizations struggle to compete with clickbait and fake news for advertising revenue.
Jenkins emphasizes the importance of news as a public good and freedom of expression, likening the current situation to a tipping point similar to the climate crisis. He argues that the lack of transparency from Google and other tech platforms hinders media organizations’ ability to protect these rights.
Studies have estimated that Google and Meta owe US publishers billions of dollars annually for the news content they distribute. However, tech giants have resisted paying traditional licensing and copyright fees, often providing meager payments or private deals to a select few large news operations.
This lopsided arrangement has contributed to the decline of local media, particularly in South Africa, where the cost-per-impression for programmatic ads is extremely low, leaving publishers with a tiny fraction of the advertising revenue.
The reliance on programmatic advertising has also raised concerns about the accuracy and validity of metrics used by platforms like Facebook and Google. Instances of inflated or misrepresented metrics have surfaced, leading to questions about the effectiveness of these ads and the value they provide to advertisers.
To address these issues, countries like Australia and Canada have introduced legislation requiring tech platforms to compensate media organizations for the news content they distribute. While such measures have shown some success, the battle for transparency and fair compensation continues.
Caxton’s legal action against Google reflects the growing frustration among media organizations worldwide, who are grappling with the challenges posed by the digital revolution and the dominance of tech giants. The outcome of this case could have significant implications for the future of journalism and the relationship between news publishers and digital platforms.