SuperSport has slammed eMedia’s attempt to attain broadcasting rights – allegedly “for free” – to two upcoming tests between the Springboks and Ireland by approaching the competition appeal court after failing to acquire the rights directly from MultiChoice in a competitive bidding process.
In separate statements at the weekend, the SABC and MultiChoice, which owns SuperSport, announced that last Saturday’s T20 Cricket World Cup final, as well as two upcoming rugby test matches between the Springboks and Ireland on 6 and 13 July, would be broadcast on SABC platforms.
However, the agreement restricts the SABC from airing the matches on its channels that are carried on eMedia’s platforms – notably on the free-to-air satellite platform Openview.
The SABC is also restricted from streaming the matches on SABC+, its fast-growing streaming platform. But an April ruling by the Competition Tribunal outlawed such agreements between the two broadcasters for a period of six months (or until the Competition Commission decides over an earlier complaint by eMedia in the matter).
eMedia then filed an urgent application to the competition appeal last week – this was reported on for the first time by TechCentral earlier on Tuesday – asking the court to either extend the sublicensing rights the SABC has over the Irish tests to Openview’s free-to-air platform or to nullify the agreement between the SABC and SuperSport altogether and stop the SABC from broadcasting the matches.
But SuperSport CEO Rendani Ramovha has now said in an answering affidavit, filed with the competition appeal court on Monday, that eMedia joined the SABC in putting in an offer for the sublicensing rights for the Irish rugby tests – but that this was rejected for being commercially inferior.
‘For free’
“The SABC’s proposal was 50% higher than eMedia’s proposed fee,” Ramovha said. “Having failed to acquire the Irish tests sublicence by putting in a competitive offer, eMedia now runs to this court to ask it to force SuperSport and the SABC to give up the rights for free.”
MultiChoice further slammed eMedia for what it described as the company’s “scorched earth approach”. In its application to the competition appeal court, eMedia asked the court to grant it relief by either extending the sublicensing rights granted to the SABC to eMedia’s Openview platform or to nullify the agreement between the SABC and MultiChoice so that the Irish tests are not broadcast by the SABC.
“In its latest legal gambit, eMedia seeks the invalidation of the SABC’s sublicence. If eMedia were to be successful, the result would be that no SABC viewers at all would be able to watch the Irish tests. eMedia therefore seems to take a scorched earth approach – which says that if it cannot transmit the Irish tests free to air, no one can,” said Ramovha.
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Ramovha said SuperSport granted the sublicence to the SABC for terrestrial broadcasting only to preserve the exclusivity (and thus the value) of the head licence that SuperSport purchased from SA Rugby.
“This is a legitimate and commonplace commercial purpose. This terrestrial-only approach was also taken in a number of previous sublicences between SuperSport and the SABC. The tribunal order does not deal with which forms of broadcasting technology MultiChoice and the SABC may decide are the subject of any sublicence.”
The battle between the broadcasters began when eMedia filed complaints with the Competition Commission and the Competition Tribunal in October 2023 following MultiChoice’s refusal to allow rugby and cricket games sublicensed to the SABC to be carried on Openview. Openview is a free-to-air satellite platform that carries several SABC channels.
In its October filing, eMedia said MultiChoice had a dominant market position and secured exclusive rights, including free-to-air rights, due to its financial strength. It also accused MultiChoice of anticompetitive behaviour in sublicensing agreements, exemplified by the restriction that prevented Openview from carrying the Cricket World Cup and Rugby World Cup games last year. MultiChoice used its market power to compel the SABC to accept this, eMedia alleged.
In April this year, the Competition Tribunal granted interim relief to eMedia for a period of six months, or until the Competition Commission concludes an investigation into the matter, whichever comes first.
“MultiChoice, including its subsidiary SuperSport, and the SABC are interdicted from including restrictions which prohibit the SABC from transmitting or making available sublicensed broadcasts on platforms owned or operated by eMedia (through Openview) in sublicensing agreements concluded between them relating to the broadcasting of sporting events,” the tribunal said in its 15 April ruling.
eMedia now alleges that the SABC and MultiChoice have been “contemptuous” and “deliberate” in contravening the order. MultiChoice, on the other hand, argued that the competition appeal court does not have the jurisdiction to apply the ruling by the tribunal.
“Given the seriousness of such a matter, the tribunal should be afforded an initial opportunity to consider its own order, and the respondent’s conduct, and determine whether there has been a breach. And the subject of the order should, in the event that the tribunal finds against it, have the opportunity to approach the competition appeal court on appeal,” said Ramovha in his affidavit. – © 2024 NewsCentral Media
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