The Competition Commission appears to be open to settling MultiChoice’s alleged collusion with Altech in a manner that would avoid R4bn having to be forked over.
As the biblical saying goes, “The truth will set you free.” In this case, the truth may prevent Africa’s largest pay TV operator from having to fork over billions.
Last week, the commission said it referred a complaint against MultiChoice South Africa and Altech to the Competition Tribunal for prosecution. The commission is seeking an order declaring that MultiChoice, now a unit of French broadcaster Canal+, and Altech contravened the Competition Act. The referral, filed on April 15, suggests the parties conspired to divide markets when Altech elected not to compete in the pay TV market, MultiChoice’s bread and butter. That would be a contravention of the law.
So far, MultiChoice and Altech have denied any wrongdoing. On the other side, the commission says it is in possession of the agreement that the two companies made back in 2014. In the watchdog’s view, that agreement is against the law.
The commission, which investigates market structures in South Africa, has a lot on its plate, from attempts to get Big Tech to compensate traditional media outlets for lost advertising revenue, to tackling price-fixing in the shipping and banking sectors, to inquiries into fresh produce and digital platforms, as well as weighing in on mergers & acquisitions across industry and commerce.
Making spurious allegations about a deal made 12 years ago is not something that would likely rank highly on the authority’s list of priorities unless the body knew it had a good case on its hands.
History has also shown that the body can indeed make companies pay.
Silicon Valley giant Google recently agreed to pay about R688m ($42m) to local media producers after an inquiry found it profited from news content without adequate compensation. In 2019, the SABC was fined R31.8m for price-fixing and fixing trading conditions in the media industry. A few years earlier, in 2017, DStv Media Sales, a unit of MultiChoice, was fined R22.2m — plus an R8m contribution to an economic development fund — for price-fixing.
For now, the commission appears to have a solid case.
Even then, Makgale Mohlala, head of cartels at the Competition Commission, told Business Day TV that the authority is open to negotiating with the two companies.
“We always say that our doors are open for anyone who wants to negotiate settlement of a contravention of this nature,” he said. “We are saying the same to MultiChoice [and Altech]. They can approach us and tell us what it is that they can offer us in order to resolve this matter, and we are prepared to listen to their proposals.”
If the commission wins the case, the two companies would be liable for an administrative penalty of up to 10% of their annual turnover. Based on earnings reported in the 2025 financial year, this could be as much as R4.1bn for the DStv operator.
If the commission has the agreement, as stated, then the law is on its side. MultiChoice and Altech may have room to talk, wiggle and negotiate, but the competition body has the leverage.
The companies have to give up something. The question is whether that something will be billions or if they will get away with paying millions and a list of remedies and commitments instead.
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