Pay-TV Rivals Face Antitrust Probe in South Africa
MultiChoice, Africa’s largest pay-TV operator, and decoder manufacturer Altech are under scrutiny from South Africa’s competition regulators over a 2014 agreement that allegedly restricted market competition.
The Competition Commission has referred both companies to the Competition Tribunal for breaching fair trade practices. The core issue revolves around an agreement where MultiChoice and Altech reportedly pledged not to compete in the pay-TV sector.
Background on the Deal
In 2014, shortly after this market-division agreement was signed, Altech launched Node – a satellite-connected device offering video-on-demand, voice communication, and smart home features. This product had the potential to challenge MultiChoice’s dominance in the pay-TV space.
Why Regulators Are Concerned
Market-division agreements are viewed as clear violations of competition law because they eliminate potential alternatives for consumers. By allegedly agreeing not to compete, MultiChoice faced less pressure to innovate and offer competitive pricing.
If proven, both companies could face penalties up to 10% of their annual turnover.
The case raises questions about the balance between business partnerships and ensuring fair competition in African markets as digital transformation reshapes industries.