The Competition Commission has escalated a long-running investigation into the pay-television sector, referring MultiChoice South Africa and Altech UEC South Africa to the Competition Tribunal for prosecution over alleged anti-competitive conduct.
The competition watchdog said it believes the two companies entered into an agreement that effectively divided markets, potentially shutting out competition in the country’s pay-TV industry.
At the centre of the case is the relationship between MultiChoice, the dominant provider of subscription television services now owned by major French-based international media company Canal+, and Altech, which manufactures set-top boxes (STBs) used to access such services.
STBs are a critical component in the broadcasting value chain, enabling consumers to receive and decode subscription content.
Siyabulela Makunga, a spokesperson for the Competition Commission of South Africa, said that the investigation found that the two companies made a deal in February 2014 that Altech would not enter or compete in the pay-TV market where MultiChoice works.
“The commission’s investigation revealed that in February 2014, MultiChoice and Altech reached an agreement for Altech not to enter or compete in the pay-TV market where MultiChoice operates,” Malunga said.
“This arrangement constitutes division of markets by allocating suppliers and/or specific types of goods or services.”
Serious violation of the Competition Act
The regulator argues that this conduct is market division, which is a serious violation of Section 4(1)(b)(ii) of the Competition Act.
This section prohibits agreements between competitors that allocate customers, suppliers, or specific types of goods and services.
The complaint, formally lodged with the tribunal on April 15, 2026, claims that the agreement limited competition by keeping Altech as a supplier of STBs instead of allowing it to compete in providing pay-TV services.
In doing so, Makunga said, the arrangement may have limited consumer choice and reduced competitive pressure in a sector already characterised by high barriers to entry.
The commission is seeking an order declaring that both companies breached competition law and is asking the tribunal to impose administrative penalties of up to 10% of each firm’s annual turnover.
Makunga said the commission wants a court order that says MultiChoice and Altech broke Section 4(1)(b)(ii) of the act and must pay an administrative penalty of up to 10% of their annual turnover.
- The Competition Commission has referred MultiChoice South Africa and Altech UEC South Africa to the Competition Tribunal for alleged anti-competitive conduct in the pay-television sector.
- The companies are accused of entering a 2014 agreement that divided markets, preventing Altech from competing in the pay-TV space where MultiChoice operates.
- The agreement restricted Altech to supplying set-top boxes (STBs) only, limiting its ability to provide pay-TV services, which may have reduced consumer choice and competitive pressure.
- This conduct is considered a serious violation of Section 4(1)(b)(ii) of the Competition Act, which prohibits market division agreements between competitors.
- The Commission seeks a ruling that both firms breached competition law and requests administrative penalties of up to 10% of each company's annual turnover.
At the centre of the case is the relationship between MultiChoice, the dominant provider of subscription television services now owned by major French-based international media company Canal+, and Altech, which manufactures set-top boxes (STBs) used to access such services.
STBs are a critical component in the broadcasting value chain, enabling consumers to receive and decode subscription content.
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