DStv Media Sales to pay an accumulative penalty of R180m for collusion

DStv Media Sales to pay an accumulative penalty of R180m for collusion

The Tribunal has confirmed a settlement agreement involving DStv Media Sales who is to pay an accumulative settlement agreement of R180 262 599. DSTV Media Sales has admitted to colluding with other media groups on pricing, discounts and payment terms for advertising space. 

The matter relates to a November 2011 investigation in which it was found that, through the Media Credit Co-Ordinators (MCC), various media companies agreed to offer similar discounts and payment terms to advertising agencies that place advertisements with MCC members. Accredited agencies were allegedly given a 16.5% discount on payments made within 45 days while non-accredited agencies received a 15% discount.

In terms of the consent agreement DStv Media Sales the accumulative remedy of R180 262 599 includes an administrative penalty amounting to R22 262 599.

In terms of the imposed penalty, excluding the administrative penalty:

DStv Media Sales undertakes to contribute R8 000 000 to the Economic Development Fund over three years from the date of confirmation of this consent agreement 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, among others. This will be managed by the Media Development and Diversity Agency (MDDA) and audited annually.

DStv Media Sales further agreed to provide 25% in bonus airtime for every Rand of airtime bought by qualifying small agencies. This is intended to help smaller agencies participate in the market. The bonus airtime would be provided for a period of three years with a total annual airtime cap of R50 000 000.

Issued by:

Chantelle Benjamin

Communications: Competition Tribunal   

Tel (012)394 1383                                     

Cell: +27 (0) 73 007 5603  

Twitter: @comptrib                                       

E-Mail: chantelleb@comptrib.co.za

 

On Behalf Of:

Lerato Motaung                                                   

Registrar: Competition Tribunal                                        

Tel: (012) 394 3355                                             

Cell: +27 (0) 82 556 3221                                              

E-Mail: LeratoM@comptrib.co.za