logo
Tribunal says Canal+ acquisition of MultiChoice presents minimal competition concerns

Tribunal says Canal+ acquisition of MultiChoice presents minimal competition concerns

IOL News18-07-2025
Multichoice has been struggling to retain subscribers for its pay television platform, DStv, ven as it seeks to expand its digital footprint through investments in online streaming service Showmax.
Image: File
Tawanda Karombo
The Competition Competition said on Thursday that the planned acquisition of MultiChoice Group (MCG) by the French television powerhouse Canal+ has revealed minimal overlaps between the two entities, given their respective market sizes.
However, the proposed merger will necessitate a fundamental restructuring to separate the licensed broadcasting unit, which will transition into a standalone entity named LicenseCo.
MultiChoice has been struggling to retain subscribers for its pay television platform, DStv, ven as it seeks to expand its digital footprint through investments in online streaming service Showmax.
The acquisition by Canal+ is positioned as a revitalising force for MultiChoice, pending final approvals from regulatory bodies and competition authorities.
The Tribunal on Thursday heard from the Competition Commission that there were overlaps between MultiChoice and Canal+. These overlaps include included horizontal and vertical considerations.
During the proceedings at the Tribunal, both companies have horizontal overlaps as they both supply video content for broadcasting purposes.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
It was the Competition Commission's findings that MultiChoice acquires and aggregate broadcasting content across sports and movies under its subsidiaries M-Net and SuperSport while Canal+ also has similar offerings although at a small scale.
'Vertically, Canal+ currently provides content to LicenseCo, which is part of MCG while its affiliated entity, Havas Media, purchases advertising space from MCG's sales house, Digital Media Sales (DMS),' said Ndivhuwo Moleya, senior analyst for mergers and acquisitions at the Competition Commission.
The Commission said these links presented potential vertical overlaps in content and advertising supply chains, but it deemed them as insignificant.
'Looking at the number of channels that Canal+ supplies, in particular on the DStv platform, we understand it's not more than three. The upshot of that is that from a horizontal perspective, (the overlap) is very small because of the smallness of the content that Canal+ provides downstream,' said Moleya.
According to the Competition Commission, the broader content market includes numerous global suppliers, indicating low risk of anti-competitive effects.
Moreover, overlaps within the upstream advertising market, regarding the the sale of advertising slots on broadcast platforms and the downstream advertising market involving agencies such as Havas Media that purchase advertising on behalf of clients, were also determined to be less significant.
In arriving at the determination, regulators adopted a 'worst-case scenario' to ensure all potential competition concerns were examined.
The merger between MCG and Canal+ will be subject to a resutructuring exercise to ring-fence MultiChoice's licensed broadcasting entity, MultiChoice (Pty) Ltd. This unit will be hived off into a standalone company, LicenseCo, in line with local regulatory requirements.
After settlement of the merger, the combined group will have no interest or control in LicenseCo. However, details of the this carve-out structure for LicenseCo remain confidential.
LicenceCo will be majority-owned by previously disadvantaged and black economic empowerment companies, with MCG holding a 49% interest.
Canal+ has, however, previously said that it was still engaging with Phuthuma Nathi, which has been earmarked to hold a 27% interest in LicenceCo, although the board has already given its support for the transaction.
Black-owned and managed companies, Identity Partners Itai Consortium owned by Sipho Maseko And Sonja De Bruyn, and Afrifund Consortium have also been roped into LicenceCo, bringing 'highly experienced leaders' with 'great commercial and industry' knowledge.
'This seems a clever way to get around foreign ownership rules assuming they've had at least informal approval from Independent Communications Authority of SA (or discussions) and now deal can go ahead,' market analyst Simon Brown previously told Business Report.
The CEO of Canal+, Maxime Saada, said earlier this year that the acquisition of MultiChoice was an 'opportunity to create a unique global media company, with a strong presence across Africa with the scale, expertise, and creativity to compete and partner with the largest players' within the media and entertainment sectors.
BUSINESS REPORT
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Prudential Authority: Ithala Bank's survival must respect the rule of law
Prudential Authority: Ithala Bank's survival must respect the rule of law

IOL News

time3 hours ago

  • IOL News

Prudential Authority: Ithala Bank's survival must respect the rule of law

The future of Ithala bank continues to argued in court Image: Doctor Ngcobo / Independent Newspapers The need to preserve the existence of Ithala Bank cannot override the rule of law, as Ithala was always required to comply with the Banks Act; this was the argument heard by the three Judges (full bench) at the Durban High Court on Friday. This is because the Ithala's Repayment Administrator (RA) and the South African Reserve Bank's Prudential Authority (PA) are appealing the Pietermaritzburg High Court decision that the entity can continue to conduct its business. Ithala held an exemption from the PA, which allowed it to take deposits. That exemption expired in December 2023. In January, the PA filed for Ithala's liquidation, and Johannes Kruger, the RA, instructed Absa Bank Limited to freeze all Ithala's accounts following the expiration of the exemption. However, Ithala continued to accept deposits and failed to assure the PA that it would cease its deposit-taking activities. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ As a result of Kruger's instruction, Ithala's day-to-day running effectively stopped on January 16, 2025. Ithala took this to the Pietermaritzburg High Court, and Judge Muzi Ncube interdicted and restrained Kruger from issuing any instructions. He said, pending the outcome of the liquidation appeal, Ithala could continue with its day-to-day running. T he Judge also stated that Kruger lacks operational and management control over Ithala's day-to-day operations. Moreover, Judge Ncube said if Ithala was forced to close its doors, members of the public would not be able to access their funds, and those who are South African Social Security Agency (Sassa) recipients would not be able to access their grants. He said the bank could be sued by unpaid service providers, and it could be evicted from its lease premises. Additionally, the Judge granted PA and Kruger leave to appeal his ruling at the Supreme Court of Appeal (SCA) and made an order for his ruling to remain in force, pending the appeal. In written arguments heard by the full bench, Kruger said Ithala should not frustrate his ability as RA to take over the operations and its assets to achieve the objective of his appointment. On December 18, 2023, the PA appointed Kruger as the RA. His appointment related to the repayment management of deposits collected unlawfully by Ithala. He asked for the full bench to set aside the orders made by Judge Ncube to give the bank the green light to function. 'If depositors will suffer harm and Ithala also claims that it will suffer harm, for purposes of the interim interdict, this court will weigh the balance of convenience,' the PA argued. The PA further argued that, according to sections 18(1) and 18(3), Judge Ncube should have rejected Ithala's application if it meant that depositors would also face irreparable harm, as this would violate their rights. 'Granting the orders would also go against the clear responsibilities outlined in the Banks Act, which are designed to protect depositors' interests,' read the arguments. In its response, Ithala said both PA and Kruger believe that they have the effect of suspending the constitution of the country, the basic conditions of the Employment Act 75 of 1997, the Companies Act of 71 of 2008, and the Income Tax Act 58 of 1962, amongst others. 'They believe they can unilaterally decide to halt the operations of a State-owned company and cancel all its contracts with its employees and service providers without a court order in circumstances where there is a pending litigation before the Courts over the extent of their powers,' Ithala said in its written arguments. It added that on January 20, 2025, Kruger, in defiance of an existing court order, unilaterally determined that salaries and benefits of Ithala employees would not be paid. Ithala warned that if the full bench rules in favour of PA and RA, the bank will shut down before the SCA appeal on its liquidation is heard. The provincial government, which has joined the fight in support of Ithala, said the findings of Judge Ncube were correct. 'Ithala has been placed in limbo through the conduct of Kruger,' it said.

NPA's decision not to prosecute Sassa fraud raises concerns over accountability
NPA's decision not to prosecute Sassa fraud raises concerns over accountability

IOL News

time5 hours ago

  • IOL News

NPA's decision not to prosecute Sassa fraud raises concerns over accountability

South African Social Security Agency has not completed lifestyle reviews, investigations, and audits have on the 11 implicated officials in compliance with remedial action by Public Protector Kholeka Gcaleka Image: File The National Prosecuting Authority (NPA) has declined to prosecute fraud and corruption in connection with the multi-million contract awarded by the South African Social Security Agency (Sassa) to Azande Consulting citing lack of prospects of success. This was revealed by the Police Ministry when it was responding to parliamentary questions from DA MP Alexandra Abrahams when she enquired whether the Hawks received request to probe possible bid rigging and corruption. This was after then acting Public Protector Kholeka Gcaleka found in 2022 that Azande Consulting should have been disqualified as it did not meet the requirements for the door-to-door survey performed as part of the Integrated Community Outreach Programme in nine provinces over a period of three years. Gcaleka also found that Sassa's Bid Adjudication Committee failed to do due diligence for an appointment made by the Bid Evaluation Committee, prior to accepting and approving Azande Consulting as one of the preferred bidders. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The Bid Evaluation Committee and Bid Adjudication Committee failed to implement controls during the evaluation and adjudication of the bid to avoid irregular, fruitless and wasteful expenditure, she said. In her remedial action, Gcaleka referred to the DPCI to consider conducting criminal investigation for possible bid rigging and corruption. Gcaleka also said that the Sassa CEO should consider conducting periodic lifestyle audits on 11 implicated officials and take action against them for breaching the institution's code of conduct. In its reply, the Police Ministry confirmed that the Directorate for Priority Crime Investigation received a request to conduct a criminal investigation in the matter that related to possible fraud and corruption. It also said the matter was officially reported to the DPCI by the Department of Social Development in August 2021 and a comprehensive investigation was conducted. 'The investigation was finalised, and the matter was submitted to the National Prosecuting Authority (NPA), on 2024-04-03, for a prosecutorial decision. Following a review of the evidence presented, the NPA declined to prosecute on 2024-12-12, citing no prospects of successful prosecution,' the ministry stated. Meanwhile, Social Development Minister Sisisi Tolashe said the lifestyle reviews, investigations, and audits have not yet been completed on the 11 implicated officials in compliance with Gcaleka's remedial action. Tolashe said Sassa has to develop a draft policy framework to guide the implementation of lifestyle audits and reviews. 'This policy is essential to ensure that such reviews are conducted in a manner that is legally sound, procedurally fair, and aligned with best practices in public administration.' She said internal consultations for the draft policy have concluded, with final approval expected by June 2025 and that Sassa was in the process of appointing a suitably qualified and independent service provider to conduct the lifestyle audits. 'Sassa is also undertaking the security vetting with State Security Agency and of the 11 employees, four have completed their vetting process and security clearance issued. 'One is in progress, two outstanding and four have left the employment of Sassa through resignation or retirement.' Tolashe further said once the policy was approved and the service provider is appointed, Sassa will initiate the lifestyle audits and investigations of the 11 officials identified in the Public Protector's report. 'Sassa remains committed to upholding the principles of good governance, transparency, and accountability,' she said.

Mamelodi Sundowns make major statement with Berg
Mamelodi Sundowns make major statement with Berg

The South African

time6 hours ago

  • The South African

Mamelodi Sundowns make major statement with Berg

Mamelodi Sundowns have secured the services of sporting director Flemming Berg for another two years, ending months of speculation around his future. The Danish administrator, who arrived in 2022, will now continue to play a pivotal role in the club's ambitious growth strategy. Berg's new contract includes one significant change, he has personally removed a controversial clause that previously entitled him to a percentage of transfer fees involving players developed at the club's DStv Diski Challenge (DDC) structures. Why Berg's role remains crucial to Sundowns' vision When Sundowns unveiled Berg as their sporting director in April 2022, they described him as the architect set to elevate the club's footballing standards through his vast European experience. Berg had previously spent seven years as Head of Elite Football Development at the Danish Football Association (DFA), where he pioneered the acclaimed 'Talent ID' programme and implemented a cohesive playing philosophy across all levels. Under his leadership, Danish football embraced a youth-driven approach that delivered spectacular results, including a run to the UEFA Euro semi-finals and a climb in FIFA rankings from 46th to ninth between 2016 and 2021. 'His work was instrumental,' one club source said, 'in shaping not only the technical direction but also the mentality of our football department.' Before his tenure with the DFA, Berg served as an international scout for Chelsea for seven years, adding Premier League pedigree to his impressive CV. One of the more contentious elements of Berg's previous deal was a clause entitling him to around 10% of transfer fees for players developed through the DDC system. However, this clause raised concerns during the potential transfer of promising youngster Kutlwano Letlhaku. To avoid any conflict of interest or legal issues, Berg requested the removal of the clause from his new contract. The club honoured his request, and the clause does not appear in the renewed agreement. Since Berg's arrival, Sundowns have continued their domestic dominance, claiming an eighth consecutive league title. His tenure also aligned with the club's first CAF Champions League final appearance since 2016, under Portuguese tactician Miguel Cardoso, who took charge midway through the 2024/2025 season. At the FIFA Club World Cup, Masandawana delivered standout performances, further cementing their place among Africa's elite clubs. Berg has overseen strategic signings that have strengthened the squad, including the likes of Marcelo Allende, Lucas Ribeiro Costa, Arthur Sales, and Tashreeq Matthews. His eye for emerging talent has also seen youngsters such as Malibongwe Khoza graduate to the senior team. A testament to Sundowns' deepening talent pool. Why did Mamelodi Sundowns even allow such a clause? Let us know by leaving a comment below or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store