MultiChoice faces potential R4bn penalty for allegedly contravening Competition Act
· Citizen
MultiChoice, one of Africa’s largest streaming platforms, faces a potential penalty of up to 10% of its annual turnover should the Competition Tribunal find it and Altech guilty of contravening the Competition Act.
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This follows the Competition Commission’s referral of a complaint to the Tribunal, alleging that MultiChoice and Altech entered into an agreement in 2014 that prevented the latter from entering the pay-TV market.
Altech is a manufacturer of Set Top Boxes (STBs) that are used to operate subscription-based or pay television services (Pay-TV). MultiChoice, a provider of Pay-TV, uses STBs to provide its services. MultiChoice sources the STBs from Altech.
Allegation against MultiChoice
eNCA reported the competition watchdog is prepared to pursue full prosecution against MultiChoice over an alleged anti-competitive agreement.
The Competition Commission investigates and prosecutes alleged breaches of competition law, while the Competition Tribunal serves as the adjudicatory body that hears cases and determines penalties or remedies.
“In the complaint lodged with the Tribunal on 15 April 2026, the Commission alleges that 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 of the Competition Act 89 of 1998, as amended,” said the competition watchdog last week.
MultiChoice faces potential R4 billion penalty
“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.”
The Commission wants the Tribunal to order MultiChoice and Altech to pay an administrative penalty of up to 10% of their respective annual turnover. For MultiChoice, this means it will be pay at least R4 billion.
Competition watchdog open to talks
The Competition Commission is reportedly open to talks with the two to reach a settlement agreement.
MultiChoice, now owned by French media giant Canal+, has been making headlines for the drastic changes it has been making since the takeover.
MultiChoice on Tuesday denied breaking any competition law while entering into the agreement with Altech.
“MultiChoice has noted the Competition Commission’s referral to the Competition Tribunal this morning. 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.”