South Africa might start regulating podcasters

Ciao,

Victoria from Techpoint here,

Here’s what I’ve got for you:

SA wants to tame the wild west of podcasting
Nigeria claps back at Meta meltdown
Kenya to support startups via tax incentives

South Africa wants to tame the wild west of podcasting

South Africa’s Parliament is eyeing the podcast space, and it might not be long before your favourite podcast episodes are subject to new rules. The big issue? Outdated laws that don’t account for modern platforms like YouTube or Spotify.

According to Khusela Diko, who chairs the Parliamentary Committee on Communications and Digital Technologies, podcast regulation isn’t being driven by any major scandal; it’s just a long-overdue update.

The current laws — think the 1999 Broadcasting Act and the 2005 Electronic Communications Act — are clearly from a different era. Diko says these laws simply don’t stretch far enough to include today’s booming online content scene, including podcasts and streaming platforms.

Enter the AAVCS. That’s the Audio and Audiovisual Content Services policy. It’s supposed to bring things up to speed, putting streamers and podcasters under similar rules as traditional broadcasters. That includes possible content guidelines and the ability for South Africans to report harmful or misleading shows.

So what does this mean for creators? Well, government regulation is one option, but Diko says she’s open to the idea of self-regulation as long as there’s some accountability. Just like print media has the Press Council and traditional broadcast has a complaints commission, podcasters could potentially create their own ethical standards body.

But don’t panic. This isn’t a return to the dark days of censorship, says Diko. She insists freedom of expression will still be protected. However, that freedom needs to be balanced with respect for other people’s rights, including dignity and privacy. If self-regulation can do that, it might just fly.

Meanwhile, the same scrutiny is heading for big-name streamers like Netflix and Disney+. South Africa’s looking at rules that could make these platforms get licences and either produce local content or contribute to a fund supporting local creators. It’s part of a bigger move to level the playing field and make sure global giants give something back to the local economy.

Nigeria claps back at Meta meltdown

WhatsApp’s recent warning that it might exit Nigeria seems like a calculated move to stir up public backlash and pressure the Nigerian authorities into reconsidering their decision. Or is it not?

The messaging platform, along with its parent company Meta, is in hot water with the Federal Competition and Consumer Protection Commission (FCCPC) over violations of the Federal Competition and Consumer Protection Act (FCCPA) and Nigeria’s Data Protection Regulation (NDPR).

The FCCPC investigation found that Meta and WhatsApp have repeatedly infringed on Nigerian laws. They’ve been accused of denying Nigerians control over their personal data, transferring and sharing that data without permission, and treating Nigerian users unfairly compared to others globally. The commission also claims Meta has abused its dominant position in the market with unjust privacy policies.

This isn’t Meta’s first brush with legal trouble over data privacy. The company has been fined in several other countries, including Texas, where it was slapped with a $1.5 billion fine, and the EU, where it recently had to pay $1.3 billion for similar violations. But unlike in Nigeria, Meta didn’t threaten to shut down services in those places. They just complied with the regulations.

On Saturday, the Competition and Consumer Protection Tribunal upheld the FCCPC’s final order, which demands that Meta and WhatsApp stop exploiting Nigerian consumers, change their practices, and follow Nigerian laws. The Tribunal’s decision makes it clear that threatening to leave Nigeria won’t erase Meta’s legal responsibilities.

Meta is now facing fines totalling about $290 million from various Nigerian agencies, including the FCCPC, the Nigerian Data Protection Commission (NDPC), and the Advertising Regulatory Council of Nigeria (ARCON). The company has argued that Nigeria’s data protection rules are unrealistic, especially a demand that Meta gets approval from the NDPC before transferring Nigerian user data outside the country.

This ongoing legal battle is just one part of Meta’s issues in Nigeria. WhatsApp, back in 2024, threatened to pull out after being hit with a $220 million fine. Although the company appealed, the fine was upheld, and they’ve been fighting multiple related cases in Nigerian courts.

Kenya to support startups via tax incentives

tax — Photo by The New York Public Library on Unsplash

Kenya is making moves to boost its startup ecosystem with a new tax policy that defers taxes on employee share ownership plans (ESOPs). This change, effective from July 1, 2023, aims to encourage innovation and attract investment in the country’s burgeoning tech scene.

Under the current tax regime, employees are taxed on shares granted to them as part of their compensation, even before realising any financial gain. The new policy shifts this approach by deferring taxation until one of three events occurs: the employee sells the shares, leaves the company, or five years have passed since the shares were awarded.

This move is particularly beneficial for startups, which often use equity to attract and retain talent in lieu of high salaries. By delaying the tax burden, employees can focus on growing the company without immediate financial strain, and startups can conserve cash during their critical early stages.

To qualify for this tax deferral, startups must be incorporated in Kenya, have an annual turnover of less than KSh 100 million (approximately $731,000), and be less than five years old. Additionally, the startup should not be a result of a split or restructuring of an existing business, and certain sectors like management and professional services are excluded from this benefit.

President William Ruto announced this policy during the American Chamber of Commerce Regional Business Summit, emphasising the government’s commitment to creating a conducive environment for startups and positioning Kenya as a leading innovation hub in Africa.

While the policy has been welcomed by many in the startup community, some experts caution that the eventual tax liability could be substantial if the company’s valuation increases significantly over the five-year period. Nonetheless, this initiative marks a significant step towards fostering a more supportive ecosystem for startups in Kenya.

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