The Competition Commission has referred MultiChoice South Africa and Durban-based decoder manufacturer Altech UEC to the Competition Tribunal for prosecution, alleging the two companies entered into a market-division agreement in February 2014 under which Altech would not compete with MultiChoice in the pay-TV market.
The referral accuses the parties of contravening the Competition Act, which prohibits agreements between competitors or potential competitors to divide markets by allocating suppliers, customers, or specific goods and services. The commission is seeking administrative penalties of up to 10% of each company’s annual turnover.
MultiChoice had long sourced set-top boxes from Altech UEC, the decoder manufacturing business that was part of Altron’s TMT division at the time of the alleged agreement. The commission said its investigation found that the parties reached an agreement in February 2014 under which Altech would stay out of the market in which MultiChoice operated.
Seven months after the alleged agreement, in September 2014, Altech launched the Altech Node – an ambitious, satellite-connected device that combined push video-on-demand, internet telephony and home automation software with a built-in payments platform.
At the launch, then-Altech CEO Craig Venter told TechCentral the Node was “not a direct challenge to MultiChoice”, which he described as “an important customer of the group through Altech UEC”. Venter also disclosed that Altech had offered MultiChoice the option of partnering on the Node’s launch, but that those talks “didn’t lead anywhere”.
Refunded
The Node carried no linear pay-TV channels and was sold as a video-on-demand and smart-home product. It launched at R3 499 with a R299 monthly subscription, struggled to gain retail traction and was wound down by Altron by late 2015. Altron refunded subscribers R1 999 per device sold.
Altron sold Altech UEC in 2019 to Chinese-owned Skyblu Technologies, which is in turn controlled by Chinese television and consumer electronics brand Shenzhen Skyworth Digital Technology.
If the commission’s allegation is upheld at the tribunal, it would suggest that Altech, as MultiChoice’s primary decoder supplier at the time, had agreed not to challenge its biggest customer head-on for a share of consumers’ wallets for fear of alienating an important client.
The commission did not say what prompted the referral of the MultiChoice/Altech UEC matter 12 years after the alleged collusive conduct.
In a statement shared with TechCentral on Monday, Altron Group said it was “aware of the Competition Commission’s referral of a complaint involving MultiChoice South Africa and Altech UEC South Africa to the Competition Tribunal.
Read: Altron to shut down the Altech Node
“As a business committed to operating legally and ethically, Altron has fully cooperated with the Competition Commission throughout this process and welcomes the opportunity to participate in the tribunal proceedings in accordance with its established practice.”
In an e-mailed statement to TechCentral, MultiChoice said it “noted the Competition Commission’s referral to the Competition Tribunal”.
“The alleged conduct relates to a historical supply agreement concluded with a key supplier of set-top boxes, which came to an end in 2015. MultiChoice firmly denies any breach of competition law regarding this former agreement. We are considering the referral and will respond fully within the prescribed timelines.” – © 2026 NewsCentral Media
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