The Competition Commission has referred MultiChoice South Africa and Altech UEC to the Competition Tribunal for prosecution. The referral highlights serious allegations of collusion in the pay-TV market that could lead to significant administrative penalties.
The commission alleges that MultiChoice and Altech entered into a market-division agreement in February 2014. This agreement prohibited Altech from competing with MultiChoice in the pay-TV market. The commission seeks administrative penalties of up to 10% of each company’s annual turnover.
MultiChoice has long sourced set-top boxes from Altech UEC. In 2019, Altron sold Altech UEC to Skyblu Technologies, which is controlled by Shenzhen Skyworth Digital Technology. This chain of ownership adds complexity to the case.
The commission stated, “This arrangement constitutes division of markets by allocating suppliers and/or specific types of goods or services.” Craig Venter noted that Altech was “not a direct challenge to MultiChoice,” describing it as an important customer through Altech UEC.
Officials have not disclosed why the referral occurred 12 years after the alleged collusive conduct. This delay raises questions about the timing and motivations behind the prosecution.
The commission alleges that this conduct contravenes section 4(1)(b)(ii) of the Competition Act 89 of 1998. If found guilty, both companies could face severe financial repercussions.
