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DStv sales admits to price-fixing

To pay ‘accumulative remedy’ of R180 million.
Competition Commission offices, Pretoria

DStv Media Sales has admitted to price fixing and the fixing of trading conditions in contravention of South Africa’s Competition Act

This is according to a statement by the Competition Commission on Thursday. The admission forms part of a consent agreement between DStv and the commission.

In terms of the consent agreement DStv Media Sales will pay “an accumulative remedy” of R180 million.

It will pay an administrative penalty of R22 262 599. R8 million will be paid to the Economic Development Fund over three years. This goes toward the development of black-owned small media or advertising agencies needing start-up capital, and will help black media or advertising students needing bursaries, among others. The Media Development and Diversity Agency will manage this.

DStv Media Sales will also provide 25% in bonus airtime for every rand of airtime that qualifying small agencies buy, for three years, subject to a R50 million airtime cap.

“The matter relates to a November 2011 investigation which found that, through the Media Credit Co-Ordinators (MCC), various media companies agreed to offer similar discounts and payment terms to advertising agencies that place advertisements with MCC members,” states the commission.

“MCC accredited agencies were offered a 16.5% discount for payments made within 45 days of the statement date, while non-members were offered 15%.

“The commission found that the practices restricted competition among the competing companies as they did not independently determine an element of a price in the form of discount or trading terms. This amounts to price fixing and the fixing of trading conditions in contravention of the Competition Act.”

The commission’s filed the consent agreement with the Competition Tribunal for confirmation.

Owned by Multichoice, DStv Media Sales handles commercial airtime sales and on-air sponsorship. Airtime is sold on pay TV commercial channels and on the two terrestrial M-Net channels.

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Can the Competition Commission also make a penalty charge to DSTV which is to be paid to its subscriber’s every time it flights a self ingratiating advert

So this is a “budget” penalty.

Providing additional airtime at cost price for themselves but valued at retail value.

Utter BS.

I wonder who is getting a kickback from this “penalty”

In best male imitation of girly voice: “Oh no Multichoice! You have been bad boys! Let’s spank your naughty bums! Remember my tips!”

Yes, who dreams up these penalties and fines? As long as I continue to get the services they agree to provide, and I am happy with the general content, they can stick their penalties where the sun don’t shine. And I don’t want a sudden rise in my monthly subscription to “pay for” their problems.

DSTV needs more direct private enterprise competition.

They have a complete monopoly which is draining the wallets of the unfortunate people who rely on them for entertainment. Time is running out for them with the advent of Net flicks and other alternatives now becoming available and the sooner we have cheaper alternatives, the quicker we can move away from their grip and give someone else our business.

Ok so why do you not start a competitive business???

hear hear – dstv quality is kak and the price of subscriptions a rip off

Ok so -If I am the world patent holder for a widget Zee and I distribute it in South Africa and determine the price of the widget then I can be fined??? Hello??

End of comments.

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