The Competition Commission has confirmed that DStv has admitted to price fixing and contravening the Competition Act.
The satellite TV service has agreed to pay R22 million in penalty fees, as well as R8 million to the Economic Development Fund to enable the development of black-owned small media or advertising agencies.
It was found to be allowing discounts for advertising airtime if the advertising was arranged through members of the organisation Media Credit Coordinators.
The practices restricted competition among competing companies, as they did not independently determine a price.
Stephen Grootes spoke to Media Monitoring Africa's William Bird.
Its a clear admission of guilt to price fixing, their response was this was common practice. They are referring to a complaint that was brought in 2011 and they are alleging that this doesn't take place any longer.— William Bird, Director of Media Monitoring Africa
He explains how despite this DStv has steadily been increasing their monopoly on paid-to-view television.
Their position is just about unassailable, and it has very particular implications for the potential set up or failure of digital terrestrial television.— William Bird, Director of Media Monitoring Africa
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This article first appeared on 702 : 'DStv agreeing to pay R 22 million fine is clear admission of guilt'