Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Post Office on the brink of collapse

      Post Office on the brink of collapse

      13 March 2026
      New policy direction targets South Africa's municipal broadband logjam - Solly Malatsi

      New policy direction targets South Africa’s municipal broadband logjam

      13 March 2026
      How electronic warfare is threatening ships and their crews

      How electronic warfare is threatening ships and their crews

      13 March 2026
      Rand slumps for second week

      Rand slumps for second week

      13 March 2026
      Parliament opens nominations for Icasa council seats

      Parliament opens nominations for Icasa council seats

      13 March 2026
    • World
      Musk launches Macrohard in cheeky nod to Microsoft - Elon Musk

      Musk launches Macrohard in cheeky nod to Microsoft

      12 March 2026
      Europe is building an alternative to Microsoft Office

      Europe is building an alternative to Microsoft Office

      11 March 2026
      Microsoft bets on Anthropic as it loosens ties with OpenAI

      Microsoft bets on Anthropic as it loosens ties with OpenAI

      10 March 2026
      World hit by worst oil shock since the 1970s

      World hit by worst oil shock since the 1970s

      9 March 2026
      iStore prices MacBook Neo at R11 999 in South Africa

      Apple debuts MacBook Neo to challenge Windows PCs, Chromebooks

      5 March 2026
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • TCS
      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience - Theo van Zyl

      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience

      13 March 2026
      TCS+ | Flipping the narrative on AI in the Global South - Josefin Rosén

      TCS+ | Flipping the narrative on AI in the Global South

      13 March 2026
      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      TCS | Sink or swim? Antony Makins on how AI is rewriting the rules of work

      5 March 2026
      TCS+ | Bolt ups the ante on platform safety - Simo Kalajdzic

      TCS+ | Bolt ups the ante on platform safety

      4 March 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
    • Opinion
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Lawyers duel over SABC, MultiChoice deal

    Lawyers duel over SABC, MultiChoice deal

    By Antoinette Slabbert1 October 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    TV-640

    The Competition Tribunal heard on Wednesday that pay-television operator MultiChoice took control of valuable assets of the SABC and influenced a key SABC policy materially, through an agreement that only became public after somebody leaked it.

    Steven Budlender, acting for printing and publishing group Caxton, asked the tribunal to find that the agreement gave rise to a merger between MultiChoice and the SABC.

    The other applicants are Media Monitoring Africa and the SOS Support Public Broadcasting Coalition.

    If the tribunal does find that a merger occurred, the parties would be in breach of their duties to notify the Competition Commission of it and an investigation by the commission may ensue to determine the anticompetitive effects. If it is found to have a negative effect on competition, approval for such a merger may be denied and the agreement would then be set aside.

    The current application is seemingly a gateway procedure aimed at nullifying the MultiChoice/SABC agreement that is already two years into its five-year duration.

    The agreement, concluded on 3 July 2013, and amended twice in 2014, provides for an exclusive SABC entertainment channel and a 24-hour SABC news channel to be broadcast by MultiChoice as part of its paid offering. MultiChoice will pay the SABC R100m/year, increasing by 5%/year as well as an additional R35m/year for the entertainment channel. The SABC will also sell advertising and sponsorships on the channels and receive the revenue from these sales.

    The SABC is precluded from creating or broadcasting another SABC-branded 24-hour channel and from authorising other broadcasters to broadcast the channel broadcast by MultiChoice, or parts of it. The entertainment channel will contain content from the SABC archives and MultiChoice has to approve the content. The SABC is precluded from distributing or authorising any other party to distribute the channel or any part of it or to distribute a similar channel.

    The SABC grants MultiChoice the nonexclusive right to distribute the SABC’s free-to-air channels on its platform. These are SABC 1, 2 and 3. The SABC further gives an undertaking to distribute its free-to-air channels in a nonencrypted format, so that viewers with M-Net set-top boxes will be able to view it.

    Budlender characterised the agreement as “extraordinary” and “deeply unusual”.

    He said the SABC archive, an asset of considerable value, was effectively transferred to MultiChoice. This constitutes the transfer of productive capacity, as the SABC is precluded from packaging its own entertainment material for use by itself or other parties. He said the most valuable content will be used on the MultiChoice channel and the value will diminish every time it is viewed.

    Budlender said that although the two parties are competitors, the SABC is obliged to give MultiChoice three months’ advance sight of the programming on all its channels.

    SABC-640

    The agreement improves MultiChoice’s market position in the upstream and downstream markets, he said.

    He said the SABC was once in favour of encryption once digital terrestrial television starts. However, in the agreement it gives an undertaking not to encrypt, which favours MultiChoice. Following the agreement, the SABC changed its policy on encryption, he said.

    Budlender said the encryption policy is crucial and determines the way the SABC will deliver its content to the public. The TV industry is at a watershed moment with the imminent implementation of digital broadcasting and encryption is currently the subject of litigation. If the SABC should in these conditions change its position on encryption, MultiChoice will be entitled to cancel the agreement with severe penalties for the SABC.

    David Unterhalter SC for MultiChoice said Caxton applied the wrong test to determine whether a merger occurred. He said the correct legal test is whether a business or part of a business was transferred, instead of rights to broadcast in an ordinary licensing agreement, as in this case.

    He said to determine whether a business or part of a business was transferred, it should be determined whether the asset — in this case the SABC archive — is a going concern. This can be assessed by revenue, market share or productive capacity.

    In this case, he said, it was not a business or part of a business that was transferred, but rather the output of productive capacity (the archive).

    Unterhalter said only about 1% of the archive content will be used on the MultiChoice channel and there is no spill-over effect on the whole archive.

    He said the SABC’s encryption policy is only one “in a huge range of policies” of the public broadcaster. MultiChoice’s influence over this policy cannot be equated to that of a majority shareholder over a board or a board over a company, he said.

    He also denied any causal link between the agreement and the determination on the SABC encryption policy. In fact, the change in policy to favour nonencryption preceded the agreement, he said.

    Rafik Bhana SC for the SABC questioned the tribunal’s jurisdiction and said the application should be struck down since the applicants are trying to bypass the commission. He said the structure of the Competition Act is such that parties should approach the commission first, before coming to the tribunal.

    The Competition Commission refrained from filing any arguments since the matter may be referred to it for investigation.

    The tribunal will announce its ruling in due course.

    • This article was first published on Moneyweb and is republished here with permission
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Caxton Competition Commission competition tribunal David Unterhalter DStv Media Monitoring Africa MultiChoice SABC SOS Coalition Steven Budlender
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleVox takes knife to uncapped ADSL prices
    Next Article Protector asked to probe Eskom tenders

    Related Posts

    DStv's high entry price is killing subscriber growth, says Canal+

    DStv’s high entry price is killing subscriber growth, says Canal+

    12 March 2026
    Illegal streaming crackdown nets arrests, convictions in Cape Town

    Illegal streaming crackdown nets arrests, convictions in Cape Town

    12 March 2026
    Canal+ brands Showmax an 'expensive failure'

    Canal+ brands Showmax an ‘expensive failure’

    11 March 2026
    Company News
    Households still under big pressure, Altron Fintech index shows

    Households still under big pressure, Altron Fintech index shows

    13 March 2026
    How AI is changing the way we work - Angela Ho, Obsidian Systems

    How AI is changing the way we work

    12 March 2026
    Domains.co.za introduces complete domain protection service

    Domains.co.za introduces complete domain protection service

    12 March 2026
    Opinion
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026
    VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

    VC’s centre of gravity is shifting – and South Africa is in the frame

    3 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Post Office on the brink of collapse

    Post Office on the brink of collapse

    13 March 2026
    New policy direction targets South Africa's municipal broadband logjam - Solly Malatsi

    New policy direction targets South Africa’s municipal broadband logjam

    13 March 2026
    How electronic warfare is threatening ships and their crews

    How electronic warfare is threatening ships and their crews

    13 March 2026
    Rand slumps for second week

    Rand slumps for second week

    13 March 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}