The SABC says it has noted with concern the Competition Commission’s ruling on its July 2013 multi-million-rand agreement with pay to MultiChoice that it amounts to a notifiable merger.
The five-year agreement, which has since expired, gave the pay TV operator the right to air the SABC’s 24-hour news channel 404 and entertainment channel – Encore.
A notifiable merger speaks to whether the deal could be implemented without the approval of the Competition Commission.
SABC spokesperson Neo Momodu says, “The Commission’s ruling found that the encryption part of the 2013 agreement amounted to a notifiable merger and recommended that the SABC and MultiChoice file the 2013 agreement as a merger with respect to the encryption part of that agreement.”
“The SABC has since entered into a new commercial channel supply agreement with MultiChoice which in the SABC’s understanding does not constitute a merger. The SABC Board is reviewing the Commission’s recommendations in relation to the encryption part of the 2013 agreement and will respond appropriately in due course,” adds Momodu.
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MEDIA STATEMEMT
SABC NOTES COMPETITION COMMISSION RULING ON THE 2013 SABC/MULTICHOICE AGREEMENT
Johannesburg, Monday, 12 November 2018 – The South African Broadcasting Corporation (SABC) has noted with concern the Competition Commission’s ruling on the SABC and Multichoice agreement entered into in July 2013 and which has since expired.
The Commission’s ruling found that the encryption part of the 2013 agreement amounted to a notifiable merger and recommended that the SABC and Multichoice file the 2013 agreement as a merger with respect to the encryption part of that agreement.
The SABC has since entered into a new commercial channel supply agreement with Multichoice which in the SABC’s understanding, does not constitute a merger.
The SABC Board is reviewing the Commission’s recommendations in relation to the encryption part of the 2013 agreement and will respond appropriately in due course.
The SABC remains committed to ensure compliance with applicable competition laws.
END
Issued By: Group Communications
