The Competition Commission has initiated legal proceedings against MultiChoice South Africa and Altech UEC South Africa, accusing both companies of participating in collusion within the pay-TV market. The complaint has been forwarded to the Competition Tribunal for prosecution.
According to the Commission, the two companies were alleged to have conspired to divide markets, in violation of the Competition Act. This complaint was formally filed with the Tribunal on April 15, 2026, but points to actions dating back to February 2014.
Altech, a manufacturer of set-top boxes essential to subscription-based television services, has been closely linked to MultiChoice, which provides pay-TV services that use these devices. MultiChoice procured set-top boxes from Altech, intertwining the two companies within the South African pay-TV supply chain.
The Commission’s investigation revealed that in February 2014, MultiChoice and Altech entered into an agreement that restricted Altech from entering or competing in the pay-TV sector where MultiChoice operates. This type of arrangement is a market division, in which suppliers of specific goods or services are allocated among competitors.
As a consequence, the Competition Commission is seeking an administrative penalty of up to 10% of each company’s annual turnover from the Tribunal.
The alleged violation of the Competition Act coincides with the rollout of Altech’s innovative product, the Altech Node, a satellite-based video-on-demand (VOD) service that launched in September 2014. Instead of providing a conventional satellite TV service, the Altech Node offered a push VOD platform that downloaded content to a hard disk within a decoder over a satellite connection.
Utilising the same satellite as DStv, Intelsat-20, customers could connect the Node to their existing satellite dish installations. In addition to pushing VOD, Altech aimed to position the Node as a central hub for future home automation products, a vision that never materialised.
Upon launch, the Node box was priced at US$208, with a monthly subscription fee of US$18 for VOD content. Like many services during that time, the Altech Node combined subscription and transactional VOD on one platform, even offering the latest movies for rent at US$0.89-US$1.49.
Unfortunately, the high cost of the Node hindered its success, and Altech ultimately ceased operations of the service in September 2015, after having attempted to sell the product earlier in the year without finding a buyer.
