The agreement between DStv provider MultiChoice and the South African Broadcasting Corporation (SABC) referred to the Competition Commission for investigation by the Independent Communications Authority of South Africa (ICASA) today is “pro-competitive” and the regulator’s complaint “completely without foundation”, MultiChoice has said.
HumanIPO reported today ICASA has asked the Competition Commission to probe the July 2013 agreement for evidence it may constitute restrictive horizontal practice – an attempt to stem competition, fix prices or trading conditions, or divide markets through allocation of customers or territories.
Under the agreement, the SABC is required to provide a 24-hour news channel on MultiChoice’s DStv platform. With regard to the control system to be implemented on set-top-boxes in the upcoming digital migration, the SABC is also required to provide its free-to-air services unencrypted.
MultiChoice told HumanIPO the agreement is not a restrictive horizontal practice but rather promote competition.
“The agreement between MultiChoice and the SABC is a commercial channel distribution agreement,” MultiChoice said.
“A clause in that agreement requires the SABC to broadcast its free-to-air channels unencrypted. This does not constitute a restrictive horizontal practice,” the DStv provider said.
“In fact, such an arrangement is pro-competitive. The complaint is completely without foundation.”
ICASA also complained neither MultiChoice nor the SABC has heeded requests to provide a copy of the agreement to the regulator for inspection.
“As to ICASA’s allegation that MultiChoice failed to honour a request by ICASA for a copy of the agreement, MultiChoice is under no legal obligation to make the agreement available to ICASA,” MultiChoice said.
“In fact, ICASA is required, in terms of the EC Act, to refrain from undue interference in the commercial activities of licensees.”
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