Tribunal confirms consent agreements wherein outdoor advertising firms admit to price fixing, dividing markets in contravention of Competition Act
The Tribunal has confirmed two separate consent agreements wherein two outdoor advertising firms admit to price fixing and dividing markets and agree to pay administrative penalties (fines) of R2 500 000 and R12 500, respectively.
Adreach (Pty) Ltd (“Adreach”) and Sotobe Media Holdings (Pty) Ltd (“Sotobe Media”) concluded separate consent agreements with the Competition Commission (“the Commission”) in which they admit to having contravened the Competition Act (“the Act”).
Adreach agrees to pay a R2 500 000 administrative penalty of over 24 months and will also provide free advertising campaigns to qualifying SMMEs valued at R1 790 901.44 over a twelve-month period (qualifying SMMEs are enterprises with an annual turnover not exceeding R5 million). Sotobe Media agrees to pay a R12 500 penalty.
Both firms also agree, among others, to co-operate with the Commission in any subsequent proceedings relating to this matter.
Background
A Commission investigation found that Adreach and Sotobe Media agreed to share equally the market for street pole and shopping mall pole advertising in several municipalities. The agreement existed from October 2013 until February 2020.
The Commission found that the firms agreed not to approach each other’s existing customers and agreed to adhere to the same rate card when selling advertising space on street poles, in contravention of section 4(1)(b)(i) and (ii) of the Act.
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