South Africa: SABC, MULTICHOICE Say 2013 Distribution Agreement Not A Merger

Nov 16, 2018
The South African Broadcasting Corporation (SABC) and MultiChoice say they disagree that their distribution agreement signed in 2013 constitutes a merger.
This follows a ruling from the Competition Commission that the agreement constitutes a notifiable merger under the Competition Act.
But both broadcasters disagree, saying their partnership is a standard distribution deal like other channel suppliers.
MultiChoice says both the Competition Tribunal and the Competition Appeals Court previously ruled that its agreement with the SABC did not constitute a merger.
Joe Heshu, MultiChoice’s Group Executive Corporate Affairs, said in a statement on Monday that it remains firmly of the belief that the 2013 agreement with the SABC should not be considered a merger.
The SABC says it has entered into a new commercial channel supply agreement with MultiChoice which in the public broadcaster’s understanding does not constitute a merger.
“The SABC has entered into a new agreement with MultiChoice to licence its 24-hour channel for a period of five years and SABC Encore for two years. This was entered into in August this year,” SABC spokesperson Neo Momodu says.
Multichoice says it can only be able to provide a more comprehensive response once it has received the full report from the Competition Commission.
Source: NewsExpress
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