DStv Media Sales hit with R180 million fine for price fixing
DStv Media Sales has been fined R180 million for price fixing and for the fixing of trading conditions in contravention of the Competition Act.
The company reached an agreement with the Competition Commission to an accumulative fine of R180 million.
MultiChoice’s advertising sales business agreed to pay an administrative penalty of R22 million, and R8 million over three years to the Economic Development Fund.
The company will also provide 25% in bonus airtime for every rand of airtime bought by qualifying small media agencies to help them participate in the market. This bonus airtime is subject to an annual cap of R50 million.
The fine follows an investigation in November 2011 which found that various media companies agreed to offer similar discounts and payment terms to advertising agencies that place advertisements with Media Credit Co-Ordinators (MCC) members.
MCC-accredited agencies were offered a 16.5% discount, while non-members were offered 15%.
The Commission found that this practice amounted to price fixing and the fixing of trading conditions.
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