Google has committed a $40 million funding package (approximately R688 million) to support the revival of South Africa’s struggling news media. This decision follows a significant inquiry by the country’s Competition Commission.

The funding package comes just months after South Africa’s regulator accused Google of dominating the country’s digital advertising market and “extracting disproportionate value” from news publishers.

According to the Commission, Google’s systems controlled how ads were placed and sold, forcing many local outlets to depend on its tools while earning less from their content.

Under the new agreement, Google says it will channel the funds into multiple initiatives, including newsroom development, AI innovation, and digital transformation projects. The plan also includes new tools to help South African users find local news sources more easily and training programmes to equip small and community outlets with AI and data skills.

Google steps in to support local journalism

For years, South Africa’s media industry has been in survival mode. Shrinking ad revenue, audience migration to social platforms, and limited willingness to pay for subscriptions have pushed many newsrooms to the brink.

The Commission’s inquiry revealed that while global tech giants grew wealthier off the same ad ecosystem, local publishers were left with crumbs.

The decision signals a rare victory for regulators on the African continent. By securing this deal, South Africa has joined a growing list of countries, including Australia and Canada, where governments have pushed big tech to share revenue with local media. It could also set a precedent for other African nations looking to hold tech companies accountable for their impact on local journalism.

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The funding will be disbursed through several programmes:

• $3.9 million (R71 million) yearly for five years through Google News Showcase to support local publishers.
• $2.5 million (R45 million) yearly for an AI Innovation Fund to help newsrooms experiment with new technologies.
• $2.1 million (R38 million) yearly for a Digital News Transformation Fund focused on sustainability.

Beyond the funding, Google will also launch a News Innovation Forum for African publishers and introduce tools that allow readers to prioritize local news in search results.

While this is seen as a positive step, many observers say the move also highlights how dependent local journalism has become on global platforms. For South Africa’s media, the real test will be whether this deal sparks genuine, long-term change, or simply buys more time in a battle that’s far from over.