South Africa’s Competition Tribunal has confirmed a R180 million (€11.4m) settlement after the MultiChoice-backed DSTV Media Sales admitted to colluding with other media groups on pricing, discounts and payment terms for advertising space.
The matter goes back to a November 2011 when it emerged a number of media companies had agreed to offer similar discounts through Media Credit Co-Ordinators (MCC). Accredited agencies were allegedly given a 16.5 per cent discount on payments made within 45 days while non-accredited agencies received a 15 per cent discount.
The R180 million fine includes an administrative penalty of R22 million.
DSTV Media Sales has agreed to pay R8 million to the Economic Development Fund over three years. The money will be used to enable the development of black owned small media or advertising agencies requiring assistance with start-up capital and to assist black students requiring bursaries to study media or advertising.
DStv Media Sales has also agreed to offer 25 per cent in bonus airtime for every Rand of airtime bought by qualifying small agencies.
