Tribunal grants eMedia interim relief against Multichoice, Supersport and SABC in relation to the broadcasting of sporting events on television
The following Case Alert serves as an explanatory note to assist the media in reporting on this case and is not binding on the Competition Tribunal or any member of the Tribunal
Competition Tribunal grants eMedia interim relief against Multichoice, Supersport and SABC in relation to the broadcasting of sporting events on television
The Competition Tribunal (“Tribunal”) has granted an interim relief application by eMedia Investments (Pty) Ltd (“eMedia”) and its subsidiary, Platco Digital (Pty) Ltd (“Platco”), against Multichoice SA Holdings (Pty) Ltd, Multichoice (Pty) Ltd, Supersport International (Pty) Ltd (“Multichoice”) and the South African Broadcasting Corporation Soc Ltd (“SABC”).
Context
eMedia accuses MultiChoice of abusing its alleged dominant position by concluding anti-competitive and restrictive sub-licensing agreements with the SABC, the public broadcaster. eMedia alleges that MultiChoice prevents the SABC from broadcasting major sporting events (such as rugby and cricket games – including World Cup tournaments), sub-licensed to the SABC, on the SABC’s channels carried on eMedia’s Openview platform.
eMedia has filed a complaint with the Competition Commission (“Commission”) in this regard, and subsequently approached the Tribunal for interim relief i.e. to stop MultiChoice from enforcing the restriction in existing sub-licensing agreements or including such restriction(s) in any new sub-licensing agreements until the merits of the case are decided.
MultiChoice has denied the allegations and opposed eMedia’s interim relief application before the Tribunal, arguing that none of eMedia’s complaints had any basis in competition law or fact.
The SABC was broadly supportive of eMedia’s application, though it disagreed with some of e- Media’s contentions.
Interim relief
The Tribunal has granted eMedia interim relief pending the final determination of its complaint to the Commission, or for a period of six months (whichever occurs first). In terms of the Tribunal’s order:
Multichoice, including its subsidiary Supersport, and the SABC are interdicted from implementing and enforcing any restriction in the (existing) sub-licensing agreements entered into between them, in terms of which the SABC is prohibited from transmitting or making available the sub-licensed broadcasts of sports events on platforms owned or operated by eMedia through its Openview channel; and
Multichoice, including its subsidiary Supersport, and the SABC are further interdicted from including restrictions which prohibit the SABC from transmitting or making available sub-licensed broadcasts on platforms owned or operated by eMedia (through Openview) in future sub-licensing agreements concluded between them relating to the broadcasting of sporting events.
The Tribunal’s reasons for its decision will be issued in due course.
Issued by:
Gillian de Gouveia, Communications Manager
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib
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