Tuesday, December 19, 2023

South Africa's Competition Tribunal orders MultiChoice to keep e.tv's TV channels on DStv for another 6 months until case is heard in August 2024.


by Thinus Ferreira

South Africa's Competition Tribunal on Monday granted an interim relief order for an extension of another half a year until the case can be heard, ordering MultiChoice to continue to carry e.tv's TV channels that the Randburg-based pay-TV operator no longer wants on its DStv service.

The latest interim relief order in the drawn-out case comes a year and a half after MultiChoice originally wanted to axe eMedia's eExtra (DStv 195), eToonz (DStv 311), eMovies (DStv 138) and eMovies Extra (DStv 140) TV channels from DStv at the end of March 2022, following the termination of a five-year channel carriage agreement that MultiChoice didn't want to renew.

The Competition Tribunal has now once again granted eMedia an interim relief order which means that these four e.tv-packaged TV channels will remain on DStv until August 2024.

After MultiChoice told eMedia that it only wanted to keep and continue with the e.tv channel and the eNCA (DStv 403) TV news channel which fall under separate channel carriage agreements and no longer wanted to keep the other TV channels which are also available on eMedia's Openview free-to-air satellite TV service, eMedia accused MultiChoice of an abuse of marketplace dominance under the Competition Act. 

The e.tv-packaged TV channels have been some of the most-watched TV channels on DStv in South Africa, with eExtra also carried on China's StarTimes operating as StarSat in South Africa.. 

The case then turned into a drawn-out battle.


Long-winding case
The Tribunal heard the case in April 2022 and dismissed it. MultiChoice dropped the e.tv channels at the end of May 2022.

MultiChoice told the Competition Tribunal during hearings in April 2022 that it had satellite transponder capacity constraints and that eMedia's TV channels didn't fit into its 5-year strategy. eMedia showed that MultiChoice did have enough satellite capacity.

After MultiChoice dropped the channels at the end of May 2022, eMedia then took MultiChoice to the Competition Tribunal again when it immediately appealed the case. MultiChoice was therefore ordered to immediately reinstate the e.tv channels for another few months pending the outcome of the appeal.

A Competition Commission investigation had been ongoing with eMedia alleging that "MultiChoice's conduct constitutes an abuse of dominance in contravention of the Competition Act". The Tribunal granted another extension order in December 2022 for a further period of a maximum of six months.

After the last extension granted by the Tribunal in December 2022, the eMedia channels would have been removed from DStv at the end of July 2023. 

In June this year, eMedia meanwhile asked MultiChoice directly for an extension or undertaking that it would not remove the e.tv channels from DStv but MultiChoice said it wouldn't agree to any such extension. 

eMedia then again sought urgent relief and once again asked for a further extension from the Competition Appeal Court for its e.tv channels to remain on MultiChoice's DStv. 

The court then decided that MultiChoice must "maintain the status quo and is interdicted from removing the following channels from the bouquet of channels on the DStv platform of which they currently form part" while the Competition Tribunal considers whether "a further extension of interim relief can be legally justified".

MultiChoice opposed the extension.

On Monday the Competition Tribunal extended it for another 6 months from this week, or pending the conclusion of the hearing, whichever occurs first. The Tribunal said its reasons for the decision would be issued in due course.

The hearing is to take place in August 2024.