Social Media Giants Face Scrutiny Over Misinformation and Anti-Competitive Practices in South Africa
South Africa’s Competition Commission has released a scathing provisional report accusing social media giants X (formerly Twitter) and Facebook (owned by Meta) of fostering the spread of misinformation and disinformation, while simultaneously undermining the viability of traditional news media. The report, culminating a two-year market inquiry into digital platforms, alleges that these platforms prioritize engagement-driven algorithms that amplify sensationalist content, often at the expense of factual reporting. This algorithmic bias, the commission argues, creates an uneven playing field, disadvantaging news organizations that prioritize credible journalism. Furthermore, the burden of fact-checking the misinformation propagated on these platforms falls disproportionately on news outlets, without any form of compensation from the social media companies that profit from the resulting engagement.
The commission’s investigation extends beyond misinformation, delving into anti-competitive practices that stifle the growth and reach of news organizations. The report points to the deliberate suppression of posts containing links to external news websites, a tactic employed by both X and Facebook to retain users on their platforms. This practice, the commission contends, deprives news outlets of crucial referral traffic and advertising revenue, further exacerbating the financial challenges faced by the industry. The report also highlights the limited monetization opportunities offered by these platforms to news organizations, creating a revenue disparity that favors the social media giants. This, coupled with the lack of regulatory oversight, allows these platforms to thrive at the expense of credible news sources, a situation the commission deems particularly harmful to children and those lacking digital literacy skills.
The Competition Commission proposes a series of remedial actions, including holding X and Facebook liable for actively promoting misinformation and disinformation. This accountability, the commission believes, would incentivize the platforms to implement effective mechanisms for identifying and mitigating the spread of false information. Crucially, the report recommends a policy against amplifying misinformation through promoted posts, a practice that currently contributes to the widespread dissemination of inaccurate content. While the commission acknowledges the complexity of policing misinformation, it emphasizes the need for legislation and regulation to address this pressing issue.
The report also calls for specific actions from Meta and X to rectify their anti-competitive practices. Meta is urged to cease deprioritizing news media posts containing links and restore organic reach to levels comparable to posts without links. Additionally, the commission recommends algorithmic changes that would significantly increase referral traffic to South African news media websites, either doubling current levels or matching peak referral traffic observed in the past eight years. Similarly, X is urged to cease deprioritizing news media posts with links in its "For You" and "Latest Feed" algorithms, ensuring equal organic reach for posts with and without links.
The commission’s provisional findings and recommendations underscore the growing concern over the power and influence wielded by social media platforms. The report highlights the urgent need for regulatory intervention to address the proliferation of misinformation, protect the viability of credible news sources, and ensure a fair and competitive digital landscape. The proposed remedies, if implemented, could significantly reshape the relationship between social media platforms and news organizations, potentially fostering a more balanced and sustainable ecosystem for information dissemination.
The commission’s findings come at a time when Meta is planning to replace its fact-checking partnerships with community notes, a move that has raised concerns about the platform’s commitment to combating misinformation. By shifting the responsibility of fact-checking to its user base, critics argue that Meta is abdicating its responsibility to ensure the accuracy of information shared on its platform. This decision, coupled with the commission’s findings, further emphasizes the need for regulatory oversight to ensure accountability and protect the integrity of information in the digital age. The provisional report now awaits public comment and further investigation before final recommendations are made. The outcome of this inquiry could have significant implications for the future of online news and the regulation of social media platforms in South Africa and beyond.