The South African Broadcasting Corporation said on Monday it had noted with concern the Competition Commission’s ruling on the R500 million agreement it entered into with pay-TV operator, Multichoice in July 2013, which has since expired.
The commission ruled that a channel distribution agreement between the SABC and MultiChoice constituted a notifiable merger and recommended that the two must file the agreement as a merger with respect to the encryption part of the deal, to avoid violating competition laws.
The five-year agreement gave MultiChoice the right to broadcast SABC’s 24-hour news channel and an entertainment channel, SABC Encore.
SABC spokesperson Neo Momodu said the public broadcaster had since entered into a new commercial channel supply agreement with Multichoice which in its understanding did not constitute a merger.
African News Agency