Canal+ faces $244m antitrust risk in SA – report

Canal+

Cape Town – French media company Canal+ is facing regulatory pressure in South Africa after the Competition Commission referred MultiChoice and Altech UEC South Africa to the Competition Tribunal over alleged anti-competitive conduct in the pay-TV market.

According to Business Insider Africa, the Commission alleges that since 2014, MultiChoice and Altech had an agreement preventing Altech from competing in the sector, potentially violating South Africa’s Competition Act.

Authorities are seeking penalties of up to 10% of annual turnover, which could expose MultiChoice to a fine of about $244 million.

The case comes after Canal+ completed its $2 billion acquisition of MultiChoice, making the French broadcaster liable for any financial penalties. The matter adds uncertainty to Canal+’s African expansion plans and expected cost-saving targets linked to the deal.

MultiChoice has denied wrongdoing, while a tribunal hearing date has not yet been set.

In Marh this year, Canal+ said it would discontinue loss-making South African streaming service Showmax after acquiring its owner MultiChoice, the continent’s largest pay-TV enterprise.

The streaming platform, launched by MultiChoice in 2015, is available in at least 44 African countries and has been a home for African films and TV series.

“MultiChoice, part of CANAL+ SA … today announces the forthcoming discontinuation of the Showmax service,” Canal+ said in a statement.

“The substantial annual losses experienced by the Showmax business have proved unsustainable.”

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