Media24 is expected to appear before the Competition Tribunal in Pretoria on Wednesday for allegedly pushing a competitor out of the community advertising market on purpose.<\/p>\n
The case against Media24, which was brought to the tribunal by the Competition Commission, surrounds the demise of competitor Gold-Net News, which operated between 2004 and 2009.<\/p>\n
Media24 allegedly positioned a competing community newspaper, Goudveld Forum, in opposition to Gold-Net News and ran the newspaper at a loss until Gold-Net News’s closure.<\/p>\n
The commission alleged that, after the closure, Media24 closed down Goudveld Forum and either retrenched its staff or redeployed them to other Media24 publications.<\/p>\n
One of those publications was Vista, which operated in the same geographic area as Gold-Net News and Goudveld Forum.<\/p>\n
Media24 has denied the commission’s allegations and said Goudveld Forum covered its costs between 2004 and 2009.<\/p>\n
The company also said it was not true that Goudveld Forum was kept open so it could deter competition against Vista.<\/p>\n
Media24 also denied that Gold-Net News closed down due to anti-competitive strategies on its part, citing the 2008 economic downturn and other possible reasons for Gold-Net News’s decline and subsequent closure.<\/p>\n
The area of operations in which the complaint arose is what the commission terms the Goldfields area.<\/p>\n
The Goldfields area consists of the towns of Welkom, Odendaalsrus, Allanridge, Riebeeckstad, Virginia, Hennenman, Bronville, Jerusalem, Wesselsbron, Bultfontein, Theunissen, Ventersburg, Thabong, Meloding, Kutluanong, and Phomolong.<\/p>\n
The tribunal’s hearing is expected to take place over 10 days in November, starting on November 6 and ending on November 29.<\/p>\n
The case against Media24 is the first of its kind brought by the commission to the Competition Tribunal in its 14-year history.<\/p>\n
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