by Thinus Ferreira
South Africa's Competition Commission is referring both MultiChoice and Altech to the country's Competition Tribunal for prosecution after MultiChoice and Altech's decoder manufacturing deal and an allegation that they colluded to divide markets.
If found guilty, Canal+'s MultiChoice and Altech could be forced to pay an administrative penalty of up to 10% of their respective turnover.
According to the Competition Commission, MultiChoice and Altech contravened section 4(1)(b)(ii) of the Act with alleged market collusion.
According to the Competition Commission, MultiChoice South Africa and Altech UEC South Africa entered into a deal to "divide markets".
Altech is a manufacturer of set-top boxes (STBs) like DStv decoders, which are used to
operate subscription-based or pay-TV services.
Canal+'s MultiChoice, which runs a pay-TV service, sources and uses STBs or DStv decoders made for MultiChoice by Altech.
Interestingly, at the time, the Durban-based Altech, that was then owned by Altron, started its own push into a video-on-demand service, the Altech Node that it launched in September 2014.
The Altech Node was a shocking and expensive failure, but it also seems that Altron was persuaded by MultiChoice, and agreed, to discontinue its own Altech Node, in order to keep the contract to make DStv decoders for MultiChoice.
Altron shuttered the Altech Node just a year later in September 2015.
In the complaint lodged with the Tribunal on 15 April 2026, the
Commission alleges that MultiChoice and Altech entered into an agreement
to divide markets by allocating suppliers and specific types of
goods or services, in contravention of section 4(1)(b)(ii)
of the Competition Act 89 of 1998.
"The Commission’s investigation revealed that in February 2014,
MultiChoice and Altech reached an agreement for Altech not to enter or
compete in the pay-TV market where MultiChoice operates."
The Commission says "This
arrangement constitutes division of markets by allocating suppliers
and /or specific type of goods or services."