The Competition Commission has ordered various media companies to pay millions of rands in fines for cartel conduct, including price-fixing.
Companies such as Primedia, Ster-Kinekor and the SABC, admitted and were found guilty of offering similar discounts and payment terms to advertising agencies that place adverts through the Media Credit Coordinators (MCC). This practice prevented small qualifying agencies from competing.
In 2011, an investigation by the competition commission found that through Media Credit Co-ordinator (MCC) various media companies agreed to offer similar discounts and payment terms to advertising agencies that place advertisments with MCC members.
MCC accredited agencies were offered a 16, 5% discount, while non-members got 15 %. The Commission say this was in breach of the Competition Act. The media companies such as SABC, Primedia and Ster-kinekor have admitted to their involvement in price fixing and have agreed to pay settlements.
Spokesperson for the Competition Commission, Sipho Ngwenya, says small advertising agencies are the biggest victims, and this is why the remedy is structured in such a way that it empowers small advertising agencies.
SABC PRIMEDIA and STER KINEKOR to PAY MILLIONS for CARTEL CONDUCT 1 (Text)
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