MultiChoice's DStv Fined $14 Million For Price Fixing In South Africa

MultiChoice's DStv has been fined $14 million (R180 million) in South Africa for price fixing. The satellite television's Media Sales division was found by South Africa's Competition Commission to have contravened the country's Competition Act in relation to "price fixing and fixing of trading conditions".

The fine is in raelation to an investigation from November 2011 where it was discovered that through the Media Credit Co-Ordinators (MCC), various media companies, including DStv, had colluded to offer similar discounts and payment terms to advertising agencies that place advertisements with MCC members.

“This amounts to price fixing and the fixing of trading conditions in contravention of the Competition Act,” said the Competition Commission in a statement.

However, the fine will not be directly payable to the media agencies affected but will be structured as MultiChoice agreed that they will pay an admistrative fine to the Comission as well as part of the fine being payable to South Africa's Economic Development Fund.

Added to that MultiChoice agreed that they will provide 25% in bonus airtime for every advertising airtime purchased by qualifying small media agencies.

This is not the first investigation that DStv is under in Afrika. Earlier in 2017 Nigeria's House of Representatives said that it had instructed its Committee on Information, National Orientation, Ethics and Values to investigate Multichoice Nigeria's ‘exorbitant charges’ for its DStv and GOtv packages.

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