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LequteMan
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DStv Media Sales has been fined R180 million (about $14m) by the South African government for violating the nation's Competition Act.
The fine follows an investigation in November 2011 which found that various media companies agreed to offer similar discounts and payment terms to advertising agencies that place advertisements with Media Credit Co-Ordinators (MCC) members.
MCC-accredited agencies were offered a 16.5% discount, while non-members were offered 15%. Authorities deemed this practice amounted to price fixing and the fixing of trading conditions
MultiChoice’s advertising sales business agreed to pay an administrative penalty of R22 million, and R8 million over three years to the Economic Development Fund. The whole fine accumulated to R180 million.
DStv will also provide 25% in bonus airtime for every rand of airtime bought by qualifying small media agencies to help them participate in the market. This bonus airtime is subject to an annual cap of R50 million.
The fine follows an investigation in November 2011 which found that various media companies agreed to offer similar discounts and payment terms to advertising agencies that place advertisements with Media Credit Co-Ordinators (MCC) members.
MCC-accredited agencies were offered a 16.5% discount, while non-members were offered 15%. Authorities deemed this practice amounted to price fixing and the fixing of trading conditions
MultiChoice’s advertising sales business agreed to pay an administrative penalty of R22 million, and R8 million over three years to the Economic Development Fund. The whole fine accumulated to R180 million.
DStv will also provide 25% in bonus airtime for every rand of airtime bought by qualifying small media agencies to help them participate in the market. This bonus airtime is subject to an annual cap of R50 million.
