Get more Mail & Guardian
Subscribe or Login

28 media companies in the dock for cartel conduct

The Competition Commission has referred 28 media companies, including the Mail and Guardian, to the Competition Tribunal for prosecution on charges of price fixing and fixing of trading conditions.

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

The investigation started in 2011 and found that media companies, using the Media Credit Coordinators, offered similar discounts and payment terms to advertising agencies. This in effect squeezed out smaller advertising agencies.

The commission also found that the implicated companies used an intermediary in Corexalance (Corex) to perform risk assessments on advertising agencies in order to impose a settlement discount structure and terms.

This, the commission contends, essentially fixed the price and trading terms, in effect restricting competition.

As part of the reparation agreed to with the three companies who plead guilty, the media companies will contribute to the Economic Development Fund which aims to develop small black owned media and advertising agencies. It also seeks to offer bursaries to black students wishing to study media or advertising.

Other media houses and advertising agencies implicated in the case include Media 24, Primedia, Avusa, SABC, Condé Nast, United Stations and Trudon.

“This is one of the legacy media practises that survived the introduction of the Competition Act in South Africa. It is a problem because it consolidates operations of a few media houses that gang up against mainly small advertising agencies,” said Competition Commissioner Tembinkosi Bonakele.

READ MORE: Independent Media and Caxton fined millions by Competition Commission

Read the Competition Commission’s full press statement below:

Subscribe to the M&G

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them.

Beauregard Tromp
Guest Author

Related stories

WELCOME TO YOUR M&G

If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here

Advertising

Subscribers only

MK committee to look into Gupta influence in military veteran’s...

Party insiders say a report on the Guptas’ association with leaders of the Umkhonto weSizwe Military Veterans’ Association will help rid the structure of Jacob Zuma’s most loyal allies

Bloated Sassa to make staff cuts

The social security agency has ‘lost’ R2-billion on unnecessary salaries and through wasteful expenditure

More top stories

As South Africa’s Covid infections surge, the number of jabs...

Hospitals are under strain, nurses are burning out and infections are on the rise, but there are limited Covid-19 vaccine doses available

SAA: PIC allegations are Harith’s albatross

Sipho Makhubela assures that the private equity firm has what it takes to raise the capital to get SAA flying again

Young people call for an end to the terrible legacy...

‘The generation of 1976 did not fight to end the injustices of their time only for there to be the dawn of a climate apartheid’

Honey laundering: Transcontinental scheme puts fake honey into our supermarkets

South African beekeepers compete with cheap honey imports while still using ethical, bee-friendly practices
Advertising

press releases

Loading latest Press Releases…
×