MultiChoice faces possible multi-billion rand penalty

JOHANNESBURG - The Competition Commission says it is prepared to pursue full prosecution against MultiChoice over an alleged anti-competitive agreement.

The Commission has referred MultiChoice and Altech to the Competition Tribunal, claiming a 2014 deal between the two prevented Altech from entering the pay-TV market.

It argues this arrangement helped MultiChoice maintain its dominance through its DStv platform, in violation of the Competition Act.

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Both companies deny any wrongdoing, saying the agreement did not break competition laws.

If found guilty, MultiChoice could face penalties of up to 10 percent of its annual turnover.

This means potentially losing as much as 4 billion rand, although the Commission says it remains open to settlement talks.

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