MultiChoice has denied the Competition Commission’s allegations that it colluded with Altech to keep its former decoder supplier out of the pay TV market.
If found guilty, the pay TV operator may have to fork out as much as R4bn in penalties, which would be a major blow for new owner Canal+, which has been working to cut costs at the Randburg-based company.
On Monday, the Competition Commission said it had referred a complaint against MultiChoice South Africa and Altech to the Competition Tribunal for prosecution.
The body is seeking an order declaring MultiChoice and Altech contravened the Competition Act. The referral, filed on April 15, suggests the parties conspired to divide markets, which is against the law.
In a statement sent to Business Day, MultiChoice said it had done nothing wrong.
“MultiChoice has noted the Competition Commission’s referral to the Competition Tribunal this [Monday] morning. The alleged conduct relates to a historical supply agreement concluded with a key supplier of set-top boxes, which came to an end in 2015,” said the company.
“MultiChoice firmly denies any breach of competition law regarding this former agreement. We are considering the referral and will respond fully within the prescribed timelines.”
If the commission wins the case, the two companies would be liable for an administrative penalty of up to 10% of their respective annual turnover.
South Africa is by far MultiChoice’s largest segment. Based on the March 2025 earnings report by MultiChoice, South Africa’s contribution to group revenue stood at R41.7bn, and 10% of this amount would have been R4.17bn.
This comes at a time when Canal+ has been looking at ways to cut unnecessary expenses and underperforming units, such as the now-defunct Showmax video streaming service. At the same time, the French group has made its investment in MultiChoice’s growth a top priority, earmarking close to R2bn in the current financial year for that purpose.
At the core of the matter is an investigation by the commission that revealed that in February 2014, MultiChoice and Altech reached an agreement for Altech not to enter or compete in the pay-TV market where MultiChoice operates.
According to the body: “This arrangement constitutes division of markets by allocating suppliers and/or specific type of goods or services.”
At the time, MultiChoice sourced its decoders from Altech, then a unit of JSE-listed Altron’s TMT division.
In essence, Altech would not compete directly in pay-TV, a market dominated by a major customer at the time, MultiChoice.
The commission investigates market structures, while the tribunal has the final say, ruling on matters referred to it that are legally binding.
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