South Africa’s leading pay-TV provider, MultiChoice, has officially contested a ruling from the Competition Commission declaring its 2013 agreement with the South African Broadcasting Corporation (SABC) a merger requiring formal notification under the Competition Act. The company has filed a legal exception with the Competition Tribunal, challenging the decision in a case that could significantly influence the country’s media landscape.
The agreement in question involved hosting SABC channels on MultiChoice’s DStv platform. A contentious clause in the deal required the SABC to avoid airing its channels on encrypted digital terrestrial television (DTT) platforms. This stipulation sparked tensions between MultiChoice and eMedia, the parent company of free-to-air channel E-tv.
The broader debate centers on South Africa’s transition to DTT and whether government-subsidized set-top boxes (STBs) should include encryption technology. MultiChoice has consistently opposed encryption, asserting it would unnecessarily burden viewers with higher costs. The company has argued that the purpose of these STBs was solely to help older TVs access digital signals during the transition phase.
On the other hand, advocates like eMedia contend that encryption is essential for safeguarding content and promoting fair competition in the pay-TV sector.
Competition Commission’s Findings:
The Commission determined that the 2013 deal gave MultiChoice undue influence over the SABC’s broadcasting decisions, equating it to a de facto merger. It alleged that both parties breached the Competition Act by not notifying authorities about the agreement.
MultiChoice has rejected this characterization, insisting the arrangement was a routine commercial deal that did not require merger classification. The company is now pursuing a Tribunal appeal to overturn the decision.
