The Competition Commission (CompCom) has referred a complaint against MultiChoice South Africa and Altech to the Competition Tribunal for prosecution.
In a statement, the CompCom says Altech is a manufacturer of set-top boxes (STBs) used to operate subscription-based or pay-television (pay-TV) services, while MultiChoice is a provider of pay-TV, which uses STBs to provide its pay-TV services.
According to the CompCom, MultiChoice sources the STBs from Altech.
JSE-listed Altron sold its STB unit Altech UEC to Skyblu Technologies in 2019. Skyblu is controlled by Smart Choice (a Hong Kong company), which is in turn controlled by major Chinese consumer electronics brand Shenzhen Skyworth Digital Technology.
In the complaint lodged with the tribunal on 15 April, the commission alleges MultiChoice and Altech entered into an agreement to divide markets by allocating suppliers and/or specific types of goods or services, in contravention of section 4(1)(b)(ii) of the Competition Act 89 of 1998, as amended.
The 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,” says the commission.
The commission seeks an order declaring that MultiChoice and Altech contravened section 4(1)(b)(ii) of the Act, and that they are liable for an administrative penalty of up to 10% of their respective annual turnover.
ITWeb was still waiting for comment from MultiChoice and Skyblu at the time of publication.
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