The Competition Commission has referred a complaint against MultiChoice SA and Altech to the Competition Tribunal for prosecution.
Pay-TV giant MultiChoice has rejected allegations of wrongdoing in its set-top box deal with Altech, dismissing claims that the agreement was anti-competitive.
This, after the Competition Commission yesterday referred a complaint against MultiChoice South Africa and Altech to the Competition Tribunal for prosecution.
The Competition Commission said MultiChoice and Altech entered into an agreement in which Altech would not compete in the pay-TV market, while continuing to supply set-top boxes to MultiChoice.
The regulator alleged this amounted to market division in breach of the Competition Act and referred the matter to the tribunal, seeking penalties of up to 10% of annual turnover.
JSE-listed Altron sold its set-top box 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 a statement to ITWeb, MultiChoice says it noted the Competition Commission’s referral to the Competition Tribunal.
“The alleged conduct relates to a historical supply agreement concluded with a key supplier of set-top boxes, which came to an end in 2015. MultiChoice firmly denies any breach of competition law regarding this former agreement. We are considering the referral and will respond fully within the prescribed timelines,” says the company.
Altron also told ITWeb that it is aware of the Competition Commission’s referral of the complaint to the Competition Tribunal.
“As a business committed to operating legally and ethically, Altron has fully cooperated with the Competition Commission throughout this process and welcomes the opportunity to participate in the tribunal proceedings in accordance with its established practice.”
