After the South Africa Precedent.. Nigeria Investigates the Encroachment of Technology Companies on Media

SadaNews - Nigerian President Bola Ahmed Tinubu has instructed the Federal Competition and Consumer Protection Commission to open an investigation into major global technology companies and generative artificial intelligence platforms operating in Nigeria, following allegations of anti-competitive practices and the illegal exploitation of news content from Nigerian media institutions, as announced by the commission. Nigerian television channel "Channels" reported that the investigation will include companies Meta, Alphabet (owner of Google), and X (formerly Twitter), as well as several generative artificial intelligence platforms operating in the country.

The presidential order came in response to a joint petition submitted to the presidency by the "Nigerian Press Organization," which is an umbrella body comprising the Newspaper Proprietors Association of Nigeria, the Nigerian Union of Journalists, Nigerian broadcasting agencies, and the Electronic Publishers Association. The Nigerian newspaper "Punch" noted that the media industry in Nigeria has been complaining for years about declining revenues and the increasing use of its content by technology companies without payment.

Three Axes of Investigation

According to the commission's statement, the investigation will address allegations of market dominance and potential anti-competitive behavior by the companies involved, in addition to claims of extraction and misuse of unauthorized content from copyrighted news articles, broadcasting materials, and other original journalistic content, which are used commercially to develop and train generative artificial intelligence models.

The investigation will also look into the complaints of Nigerian publishers who claim they have been deprived of genuine opportunities to negotiate fair compensation or suitable commercial arrangements in exchange for the use of their journalistic content. The commission will determine whether these practices constitute a violation of the Federal Competition and Consumer Protection Act of 2018 or any other applicable laws.

Tunji Bello, the Chief Executive Officer of the commission, stated that the commission will conduct an independent and transparent investigation based on evidence, adding, "We recognize the strategic importance of media for Nigerian democracy and the equally important role of technology in driving innovation and economic growth." He emphasized that the investigation "should not be construed as a presumption of wrongdoing by any institution, but rather an opportunity to establish the facts through due process," stressing that each party will be given a fair opportunity to present relevant information before any conclusions are reached.

South Africa Precedent

The commission noted in its statement that similar concerns were previously raised in South Africa, where Google agreed after an investigation by the South African Competition Commission to compensate news media there with 688 million rand (about 40 million dollars) annually for a period of 3 to 5 years.

The newspaper "Punch" reported that several countries have enacted legislation in recent years requiring digital platforms to negotiate compensation agreements with publishers, and that this investigation comes less than a year after a landmark ruling obtained by the commission against Meta for violations of competition and consumer protection laws in Nigeria, including data privacy breaches, resulting in a fine of 220 million dollars on the company, which appealed the decision.

The newspaper believes that the outcomes of this investigation may have far-reaching implications for the future of journalism and digital regulation in the country.