DStv Media Sales to pay R22.2m penalty

THE COMPETITION Commission has asked the Competition Tribunal to confirm a consent agreement with DStv Media Sales (DMS) that would see the MultiChoice-owned company pay an administrative penalty of R22.2 million for colluding with other media houses on pricing, discounts and payment terms for advertising space. The commission alleged that the media owners reached an agreement to offer similar discounts and payment terms to advertising agencies. In terms of the imposed penalty, which excludes the administrative penalty, DMS has undertaken to provide 25 percent in bonus airtime for every rand of airtime by all qualifying small agencies. “DMS will offer these terms for three years from the date of confirmation of this consent agreement, subject to a total annual cap of R50m,” the tribunal said. DMS would also contribute R8m to the Economic Development Fund over three years. – Siseko Njobeni