Competition Commission refers Multichoice, Altech to Tribunal
The Competition Commission, in a statement on Monday, said it has referred a complaint against MultiChoice South Africa and Altech UEC South Africa to the Competition Tribunal for prosecution, seeking an administrative penalty of up to 10% of their respective yearly turnovers.
The Competition Commission lodged the complaint with the Competition Tribunal on April 15, alleging that MultiChoice and Altech entered into an agreement to divide markets by allocating suppliers and/or specific types of goods or services, which is in contravention of section 4(1)(b)(ii) of the Competition Act 89 of 1998, as amended.
Altech is a manufacturer of set-top boxes (STBs) that are used to operate subscription-based or pay television (TV) services, while MultiChoice is a provider of pay TV, which uses STBs to provide its pay TV services. MultiChoice sources the STBs from Altech.
The Competition Commission’s investigation revealed that in February 2014, MultiChoice and Altech reached an agreement for Altech not to enter or compete in the pay TV market where MultiChoice operates.
This arrangement constitutes division of markets by allocating suppliers and/or specific type of goods or services.
“The Competition Commission seeks an order declaring that MultiChoice and Altech contravened section 4 of the Act, and that they are liable for an administrative penalty of up to 10% of their respective annual turnover,” it said in its statement.
Altech parent company Altron, in response to a request for comment from Engineering News on Monday, said it was aware of the Competition Commission’s referral.
“As a business committed to operating legally and ethically, Altron has fully cooperated with the Competition Commission throughout this process and welcomes the opportunity to participate in the Competition Tribunal proceedings in accordance with its established practice.”
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