South African competition body foregoes case over MultiChoice dominance
15 February 2019
South Africa's Competition Commission has announced that it will not prosecute MultiChoice and SuperSport after complaints regarding "abuse of dominance", reports ANA. The commission said that it received various complaints between 2012 and 2017 but following its investigation, it decided not to prosecute as there are no reasonable prospects of success and a regulatory intervention would be more effective.
The commission said that there was potential failure in this market, mentioning factors including the highly concentrated nature of the subscription television market, the high barriers to effective entry to it, and the inability of other, existing firms to expand, and lack of credible alternative buyers for premium sports rights other than Multichoice.
The commission said it would continue to contribute to the inquiry and support the work of ICASA in line with the terms of the existing Memorandum of Understanding between the two regulators.