Media companies accused of price fixing

Over 20 media companies, including, Primedia Broadcasting, are in hot water over allegations of price fixing.

28 media houses are facing prosecution for the fixing of trading conditions, in contravention of the Competition Act.

Competition Commission spokesman Sipho Ngwema spoke to Kieno Kammies on Wednesday.

These media organisations came together and formed a company and among themselves, as competitors, and determined the rate they were going to give to small advertising agencies.

Sipho Ngwema, Head of Communications at Competition Commission

Those agencies they accredited they gave 16.5% and those they did not accredit they gave 15%.

Sipho Ngwema, Head of Communications at Competition Commission

Because they are competing, they are not allowed to come together and determine the price, that's price fixing.

Sipho Ngwema, Head of Communications at Competition Commission

Caxton, Independent Newspapers and DStv have already pleaded guilty to the charges and agreed to pay an administrative penalty totaling more than R30-million.

Ngwema says those that pleaded guilty have decided to create a fund to empower these small ad agencies and assist them with their entry into the market.

Also, students who wants to study marketing and advertising will be offered bursaries.

Sipho Ngwema, Head of Communications at Competition Commission

To hear the rest of the conversation, listen below:


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