• Latest
Canal+ Gets Approval To Buy Pay-TV Group OCS and Orange Studio

South Africa: Competition Commission Rules MultiChoice-SABC Deal As Notifiable Merger – Report

November 26, 2024
Explore Key Outcomes From The 2024 Broadcast And Digital Media Convention – East Africa Now Available

Senegal’s TDS-SA Pledges 10,000 DTT Decoders Ahead Of Dakar 2026 Youth Olympic Games

October 30, 2026
South Africa’s TVM Launch Faces A Narrowing Test Window As BRC Data Release Remains Unconfirmed

South Africa’s TVM Launch Faces A Narrowing Test Window As BRC Data Release Remains Unconfirmed

October 30, 2026
AFD And Bank Of Industry Sign US$30 Million Facility To Finance Nigeria’s Creative Industries

AFD And Bank Of Industry Sign US$30 Million Facility To Finance Nigeria’s Creative Industries

October 30, 2026
Nigeria’s Box Office Records Show Increase Over The Festive Session

‘Tele x Zikora’ Leads Nigerian Cinema Openings With US$19,970 Weekend Debut

October 30, 2026
DStv Sees Decline In Subscribers And Profits As Business Is Buffeted By Stronger Competition 

MultiChoice Nigeria Recasts DStv Packages, With Monthly Prices Starting at US$4.45

October 30, 2026
Kenya Space Agency And Expertise France Forge Partnership To Enhance Space Capabilities And Innovation

Kenya Advances Commercial Spaceport Plans As Consortium Begins Kipini Feasibility Study

October 30, 2026
BMA Feature: Century-Old Egyptian Crocodile Fossil Identified As Brand-New Prehistoric Genus 

BMA Feature: Century-Old Egyptian Crocodile Fossil Identified As Brand-New Prehistoric Genus 

October 30, 2026
BMA Feature: Nigerian Brothers Pioneer Hyperrealistic Bionic Arm Tailored For Darker Skin Tones

BMA Feature: Nigerian Brothers Pioneer Hyperrealistic Bionic Arm Tailored For Darker Skin Tones

October 30, 2026
BMA Feature: Senegalese Youth Wrestlers Step Up Preparations Ahead Of Historic Dakar 2026 Olympic Debut

BMA Feature: Senegalese Youth Wrestlers Step Up Preparations Ahead Of Historic Dakar 2026 Olympic Debut

October 30, 2026

BMA Report: African Media Must Bridge The Gap Between Audience Engagement And Monetisation

October 29, 2026
BMA Survey Finds Africa’s Radio Sector Growing Strongly, But Digital Monetisation Remains A Critical Challenge

Senegal Launches Digital Terrestrial Radio, Opening New Phase For Broadcast Distribution

October 29, 2026
ZBC Board Chair Helliate Rushwaya Set For Rwanda Ambassadorial Posting

ZBC Board Chair Helliate Rushwaya Set For Rwanda Ambassadorial Posting

October 29, 2026
Saturday, October 31, 2026
Broadcast Media Africa
  • Home
  • News & Reports
  • Resources
  • Services
    • Promo: Spotlight Service
  • Events
  • Community
No Result
View All Result
BMA
  • Home
  • News & Reports
  • Resources
  • Services
    • Promo: Spotlight Service
  • Events
  • Community
BMA
Join BMA Network
No Result
View All Result
Home Broadcasting

South Africa: Competition Commission Rules MultiChoice-SABC Deal As Notifiable Merger – Report

November 26, 2024
Reading Time: 2 mins read
A A

In South Africa, the Competition Commission has determined that a merger arising from a 2013 agreement between MultiChoice and the SABC qualifies as notifiable and breaches the Competition Act.

In response, MultiChoice has submitted an exception application to the Competition Tribunal to contest this finding.

The agreement in question was a channel carriage deal for DStv, which included a termination clause that would come into effect if the SABC opted to broadcast its channels on an encrypted digital terrestrial television (DTT) platform. This occurred during a contentious period when MultiChoice was in a dispute with eMedia, the owner of E-tv, regarding whether government-subsidised DTT set-top boxes (STBs) should feature encryption.

The core of the debate revolved around whether competitors, notably eMedia, should gain access to the pay-TV market backed by government subsidies. MultiChoice contended that adding encryption technology would unnecessarily inflate the costs of these decoder-like STBs and pointed out that they were intended as a temporary solution for those with older TVs unable to receive digital signals.

In contrast, eMedia argued that without encryption, there was a threat that the subsidised STBs, provided for economically disadvantaged households, could be resold in foreign markets that use the same DTT standards as South Africa.

This legal battle waged on for years. Despite the government’s official support for encryption, the SABC entered into an agreement that directly contradicted that stance. The Commission concluded that this deal granted MultiChoice significant sway over the SABC’s strategic direction, effectively categorising it as a notifiable merger.

The complaint against the agreement was initially filed in 2015 by Caxton and CTP Publishers and Printers, the S.O.S Support Public Broadcasting Coalition, and Media Monitoring Africa.

After rigorous proceedings spanning the Competition Tribunal, Competition Appeal Court, and even the Constitutional Court, the Commission confirmed that the channel distribution agreement constituted a notifiable merger.

The agreement’s details surfaced in September 2013, when the Sunday Times revealed that MultiChoice had secretly negotiated a contract with the SABC. According to the agreement, should the SABC start broadcasting its channels on an encrypted DTT platform, it risked the cancellation of a lucrative five-year contract worth millions.

This deal also attracted attention from the Judicial Commission of Inquiry into State Capture. However, in 2022, Chief Justice Raymond Zondo declared MultiChoice free from any allegations of wrongdoing. “In conclusion, there is no evidence that MultiChoice had been involved in any improper, unlawful conduct, still less conduct which amounted to fraud or corruption,” the Zondo Commission’s report affirmed.

Share Tweet Post Email
Tags: Competition CommissioneMediaMultichoiceSABC
Share200Tweet125
Previous Post

South Africa: Proposed New SABC Bill Aims For Financial Sustainability And Inclusivity

Next Post

Celebrating Global TV Excellence – Highlights From The 52nd International Emmy® Awards

Publisher
-
Benjamin Pius
Publisher
-
Benjamin Pius

 About us

Our goal is always to keep industry stakeholders abreast of opportunities in technology and service innovations that are and will shape Africa’s broadcasting and media industry via quality news, information, intelligence and insight .

 Contact us

+44 (0) 207 712 1526
info@broadcastingandmedia.com
BSP Communications Limited
Level 37, One Canada Square
Canary Wharf
London, E14 5AB, United Kingdom

No Result
View All Result
  • Home
  • News & Reports
  • Resources
  • Services
    • Promo: Spotlight Service
  • Events
  • Community
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Policy.