Showing posts with label Competition Tribunal. Show all posts
Showing posts with label Competition Tribunal. Show all posts

Saturday, July 6, 2024

SABC backtracks on promises to broadcast Springbok Test rugby, cites ongoing Competition Appeal Court case over SuperSport sublicensing rights.


by Thinus Ferreira

The South African public broadcaster has abruptly backtracked on public promises and a signed agreement from a week ago to broadcast the upcoming Springbok Tests today on 6 July and on 13 July between South Africa's national rugby team and Ireland.

On Friday night, the SABC suddenly cited an ongoing case before South Africa's Competition Appeal Court between MultiChoice on the one side, and the SABC and eMedia on the other side, over the contentious sublicensing of sports rights for breaking its promise and previously announced deal with MultiChoice and SuperSport.

The SABC in a statement on Friday night said that it is going back on its promises of showing these two rugby test matches due to the legal case over sublicensing rights that is ongoing. 

A week ago the SABC CEO Nomsa Chabeli said that SuperSport and the SABC were pleased to announced that the public broadcaster will broadcast the ICC T20 Men’s World Cup final live, as well as two Springbok test matches on a delayed basis.

Nomsa Chabeli said that the "SABC has a pivotal role to inspire and build national pride and patriotism amongst citizens, and this agreement is one of the many initiatives that the organisation has been working hard on to ensure that citizens participate in major historic country moments".

According to Nomsa Chabeli the SABC was "excited that we have clinched a deal for two Springbok test matches to be broadcast on Saturday 6 July and Saturday 13 July  nd this is testament to our commitment to inclusivity and ensuring that our diverse audiences’ needs are catered for".

On Friday night Mmoni Seapolelo, SABC spokesperson, in a statement said the "SABC regrets that it will no longer be able to broadcast the Springbok Inbound test matches against Ireland on Saturday 6 July and Saturday 13 July as previously communicated".

"This decision follows the recent urgent litigation at the Competition Appeal Court over the broadcast rights to the  test matches which necessitated the SABC to review its decision to continue with the sublicense agreement concluded with MultiChoice."

According to the SABC, the broadcaster "will always strive to achieve its sports broadcast mandate without compromising its commercial objectives".

On Friday the SABC didn't say why it cancelled the deal with SuperSport and how this broken broadcast promise breaks its "testament to our commitment to inclusivity and ensuring that our diverse audiences' needs are catered for".

After the SABC's statement, MultiChoice and SuperSport then sent out a statement to the media late on Friday night.

"MultiChoice notes the decision by the SABC to terminate the sublicensing agreement signed with SuperSport, which would have allowed them to broadcast the Springbok test matches against Ireland, starting Saturday at Loftus Versfeld," MultiChoice said.

"Whilst the public broadcaster's decision is regrettable, MultiChoice fully respects and accepts the decision. MultiChoice will continue engaging with the SABC in seeking a working relationship that would benefit both viewers and sports bodies."

The sublicensing deal that the SABC signed with MultiChoice very likely violated the Competition Tribunal's ruling that states that for the time being, sports content acquired by the SABC from SuperSport can't be blocked out when shown on the SABC's TV channels on eMedia's Openview satellite service.

In its sublicensing agreements with MultiChoice and SuperSport, the SABC agreed that it would show old filler content on its SABC TV channels on Openview, while the version of the SABC's digital terrestrial TV channels, and the version of the SABC TV channels carried on MultiChoice's DStv, show the SuperSport-acquired content.

The SABC also agreed in the deals that it wouldn't show SuperSport sublicensed content on its own SABC+ video streaming service.

The Competition Tribunal in its ruling said that "MultiChoice, including its subsidiary SuperSport, and the SABC are interdicted from implementing and enforcing any restriction in sublicensing agreements entered into between them."

"MultiChoice, including its subsidiary SuperSport, and the SABC are further 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 future sublicensing agreements concluded between them relating to the broadcasting of sporting events."

"The Tribunal has granted eMedia interim relief pending the final determination of its complaint to the Commission, or for a period of 6 months, whichever occurs first".

Monday, April 15, 2024

Competition Tribunal grants eMedia's Openview interim relief in MultiChoice sports sublicensing fight: SuperSport ordered to allow content to be seen on SABC channels on Openview.


by Thinus Ferreira

South Africa's Competition Tribunal has granted interim relief to eMedia's Openview satellite service in its sports rights sublicensing fight with MultiChoice, ordering MultiChoice and SuperSport to allow SuperSport content to be carried and seen on the SABC's TV channels on Openview in cases where the SABC acquired and unlicensed sports content from SuperSport.

MultiChoice and SuperSport ordered the SABC in 2023 to either black out or replace SuperSport sports content that the SABC acquired through sublicensing, for the version of the SABC's TV channels carried on eMedia's Openview.

In an acrimonious legal case, eMedia took MultiChoice to the Competition Commission in 2023, after MultiChoice and SuperSport blocked the SABC from making Rugby World Cup and Cricket World Cup content that the SABC sublicensed from SuperSport, available on the SABC's TV channels carried on Openview.

Instead of live international sports tournaments, the SABC had to programme old filler content for its SABC1, SABC2 and SABC3 channels carried on Openview, while SABC1, SABC2 and SABC3 carried on MultiChoice's DStv and as free-to-air terrestrial channels, showed SuperSport content.

In an ongoing case before the Competition Tribunal, eMedia claims that MultiChoice has been abusing its alleged dominant position "by concluding anticompetitive and restrictive sublicensing agreements with the SABC".

Besides the overall case, eMedia also sought interim relief over the issue. MultiChoice opposed eMedia's application for interim relief, noting that "none of eMedia's complaints had any basis in competition law or fact".

On Monday, South Africa's Competition Tribunal in a media statement said "The tribunal has granted eMedia interim relief pending the final determination of its complaint to the commission, or for a period of 6 months, whichever occurs first".

"MultiChoice, including its subsidiary SuperSport, and the SABC are interdicted from implementing and enforcing any restriction in the (existing) sub-licensing agreements entered into between them."

"MultiChoice, including its subsidiary SuperSport, and the SABC are further interdicted from including restrictions which prohibit the SABC from transmitting or making available sub-licensed broadcasts on platforms owned or operated by eMedia (through Openview) in future sub-licensing agreements concluded between them relating to the broadcasting of sporting events."

"The tribunal's reasons for its decision will be issued in due course."

The interim relief means that in cases where the SABC, for the remainder of 2024, acquires content from SuperSport through sublicensing agreements, that content will be seen on the SABC's channels on Openview as well - in other words, there will no longer be one version of SABC channels for DStv and another blacked-out version of SABC channels for Openview when the SABC shows SuperSport sports content.

Late on Monday afternoon eMedia in a statement said "Today, Multichoice was dealt a blow when the Competition Tribunal granted interim relief to eMedia to lift all restrictions to broadcast sporting events of national interest (soccer, rugby and cricket) on its Openview channels, effective immediately".

"We are satisfied that our perseverance to stop MultiChoice'ss anti-competitive behaviour has paid off."

"More so, we are delighted that the interest of the hundreds of thousands of viewers that rely on Openview for purposes of accessing the SABC's channels and who were precluded from viewing the World Cup Rugby and Cricket matches because of the restriction imposed by SuperSport has been heard."

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.


Tuesday, October 17, 2023

eMedia takes sports rights fight with MultiChoice to Competition Commission.


by Thinus Ferreira

eMedia, already embroiled in a e.tv channels carriage fight with MultiChoice at the Competition Commission, has now also lodged a new case with the commission in its ongoing TV sports rights fight with the pay-TV operator.

eMedia's new Competition Commission case comes after the Gauteng High Court last week scrapped eMedia's urgent application from the roll after eMedia demanded to show the 2023 Rugby World Cup matches for free through the SABC TV channels it carries on its Openview satellite TV service.

With the help of sponsors, the SABC paid R57 million to MultiChoice to sublicence 16 matches of the 2023 Rugby World Cup from SuperSport. 

MultiChoice and SuperSport in its sublicensing agreement, blocks the SABC from showing these 16 matches on the version of SABC2 carried on eMedia's Openview.

Neither the SABC nor eMedia and Openview made any bid for the direct TV sports rights in 2018 for the 2023 Rugby World Cup from the primary rights holder, RWCL in Dublin, Ireland. That forced the SABC last month to acquire the rights from SuperSport through a sublicensing contract.

eMedia argues that there shouldn't be a "SABC2"-version from the SABC that is free-to-air on digital terrestrial television (DTT), SABC+, on DStv and StarSat, and then a separate "SABC2"-version just for Openview that shows filler content when the "real" SABC2" shows Rugby World Cup matches.

Marc Jury, MultiChoice South Africa CEO, slammed eMedia last week, saying eMedia is involved in a "classic case of free-riding" and that "eMedia wants to broadcast the matches to their Openview customers without paying a cent to do so". 

After its urgent court application was tossed last week, eMedia on Tuesday announced that "We have lodged a complaint with the Competition Commission and we have filed papers before the Competition Tribunal in respect of the provision in the sublicensing agreements concluded between MultiChoice and the SABC that prevent the SABC from utilising third-party platforms to transmit SABC channels that broadcast national sporting events".

eMedia says "MultiChoice’s conduct in this regard is particularly shocking because it has sublicensed these rights to the SABC, and accordingly, the SABC should not be prevented from utilising whichever platforms it selects to broadcast programming to the broader public".

"We believe that it is in the national interest that these issues are dealt with as soon as possible and that there are no undue delays in the merits of these matters being ventilated fully."

"National sporting events are part of our nation-building process, and accordingly, MultiChoice’s tactics and behaviour which are simply designed to entrench its dominant position in the television broadcasting sector in South Africa at the expense of the broader public in order to harm its competitors should not be countenanced."

In another long-delayed and yet somewhat similar case before the Competition Commission, the SABC had also taken MultiChoice to the commission alleging anti-competitive behaviour by SuperSport when it comes to the acquisition of sports rights and the sublicensing of sports rights.

This means that both the SABC and e.tv now have cases at the Competition Commission against MultiChoice and SpuerSport in regards to the licensing of TV sports rights in South Africa.

An in another drawn-out case before the Competition Commission, e.tv is fighting to keep its other e.tv channel packaged TV channels on MultiChoice's DStv, after MultiChoice said it no longer wants the eExtra, eToonz, eMovies or eMovies Extra channels on its platform after channel carriage extension negotiations broke down.

These e.tv channels remain on DStv after yet another extension that was granted by the Competition Tribunal, while the body must still decide "whether a further extension of interim relief can be legally justified".

This means that e.tv now has two cases at the Competition Commission against MultiChoice - one about general entertainment TV channel carriage, and one over sports rights sublicensing agreements for public television.


Friday, August 18, 2023

eMedia's e.tv channels to stay on MultiChoice's DStv for another few months after latest Competition Appeal Court decision.


by Thinus Ferreira

The set of eMedia's e.tv TV channels that MultiChoice wants to remove must remain on DStv for another couple of months and possibly until the end of 2023, with MultiChoice still not allowed to axe the eExtra, eToonz, eMovies or eMovies Extra channels after the Competition Appeal Court granted eMedia a further extension.

South Africa's Competition Appeal Court granted another extension for e.tv's channels to remain on DStv for the time being, ordering MultiChoice to keep the four TV channels on DStv, until the conclusion of the Competition Tribunal's latest decision on the drawn-out case.

After originally wanting to remove eMedia's set of TV channels from DStv at the end of March 2022, MultiChoice was finally planning to axe eMedia's channels at the end of July 2023 as the latest switch-off date in the e.tv-on-DStv-e.tv-off-DStv case which has been ongoing for over a year.

After channel carriage renewal negotiations broke down last year, MultiChoice decided that it no longer wanted to continue carrying eMedia Investments' eMovies (DStv 138), eMovies Extra (DStv 140), eExtra (DStv 195) and eToonz (DStv 311) TV channels.

MultiChoice did opt to keep – under a separate agreement – the TV news channel eNCA (DStv 403) and e.tv (DStv 194) also from eMedia, which includes the 7-days a week eNuus Afrikaans TV news bulletin packaged by eNCA and supplied to M-Net's kykNET (DStv 144) and kykNET & Kie (DStv 145) channels.

The four e.tv-packaged channels were all set to go dark at the end of March 2022 on DStv but the Competition Commission ordered MultiChoice to keep the channels for the time being until the case was heard. 

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.

Besides DStv, the e.tv channels are available on the eMedia-owned free-to-air satellite service OpenView and with eExtra also carried on China's StarTimes operating as StarSat in South Africa. The e.tv-packaged TV channels have been some of the most-watched TV channels on DStv in South Africa. 

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 has now 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".

TVwithThinus asked eMedia in late-July about the case with eMedia that said it had no comment.


Wednesday, June 1, 2022

MultiChoice finally axes eMedia's 4 e.tv-packaged TV channels from DStv.


by Thinus Ferreira

MultiChoice on Tuesday night finally axed the set of four e.tv TV channels on DStv with immediate effect after the Competition Tribunal dismissed eMedia Investments' application for MultiChoice to keep these TV channels on DStv pending an investigation into MultiChoice's market dominance.

After not signing a TV channel carriage agreement contract extension earlier this year, MultiChoice wanted to remove eMedia's TV channels of eMovies (DStv 138), eMovies Extra (DStv 140), eExtra (DStv 195) and eToonz (DStv 311) from DStv at the end of March.

MultiChoice did opt to keep - under a separate agreement - the TV news channel eNCA (DStv 403) and e.tv (DStv 194) also from eMedia, which includes the 7-day a week eNuus Afrikaans TV news bulletin packaged by eNCA and supplied to M-Net's kykNET (DStv 144) and kykNET & Kie (DStv 145) channels.

eMedia however took MultiChoice to the Competition Commission's Competition Tribunal, seeking to force MultiChoice to keep carrying eMovies, eMovies eExtra, eExtra and eToonz. 

These channels are available on the eMedia-owned free-to-air satellite service Openview, and are some of the most-watched TV channels on MultiChoice's DStv pay-TV service.

MultiChoice decided not to drop the four e.tv TV channels from DStv for the time being, pending the outcome of the Competition Tribunal's judgment, which meant that the channels remained available for another two months to DStv subscribers.

MultiChoice told the Competition Tribunal that the Randburg-based pay-TV operator had satellite transponder capacity constraints and that eMedia's TV channels don't fit into its 5-year strategy. eMedia said that MultiChoice did have enough satellite capacity.

Earlier this year, Marlon Davids, managing director of e.tv channels, told TVwithThinus that e.tv believes the channels should be carried and be available on DStv.

"Our strategy is that our channels are free-to-air channels and should be available wherever people access channels. So that's their decision, there's no regulation that they need to carry the channels. Our view is that they should," he said.

Itumeleng Thulare, MultiChoice spokesperson, told TVwithThinus earlier this year that the e.tv four channels "will now remain on DStv until this matter is concluded, which we expect to be no later than 31 May 2022." 

On Tuesday evening DStv removed the four e.tv channels after the Competition Tribunal decided in favour of MultiChoice in the case.


Tuesday, April 26, 2022

eMedia and MultiChoice's TV channels carriage war heats up before Competition Tribunal as pay-TV operator is accused of bullying and undermining rivals.


by Thinus Ferreira

The presentations before South Africa's Competition Tribunal started on Monday in the TV channels carriage war between MultiChoice and eMedia Investments over eMedia's channels that the pay-TV operator decided to dump from DStv.

eMedia is seeking a 6-months interim relief order from the Competition Tribunal, pending the final determination of its complaint before the body.

While MultiChoice decided not to renew its contract with eMedia for the eMovies, eMovies Extra, eExtra and eToonz channels, MultiChoice has kept those channels on DStv for the time being while the case is being heard before the Competition Tribunal.

eMedia also carries these e.tv-packaged TV channels on its own, free-to-air satellite platform and service Openview.

eMedia has taken MultiChoice to the Competition Tribunal and is arguing that MultiChoice's behaviour is uncompetitive and damaging its own revenue potential through its so-called "exclusionary conduct", with allegations that MultiChoice is abusing its market dominance position.

eMedia wants the Competition Tribunal to prevent MultiChoice from dropping the eMovies, eMovies Extra, eExtra and eToonz channels from its DStv bouquet. The contract has however lapsed since MultiChoice first signed a channels carriage contract with eMedia in 2017.

eMedia told the Competition Tribunal that in its view MultiChoice has "no rational justification" for dumping its e.tv-packaged TV channels from DStv and that the move will damage its advertising revenue potential, channel and content growth, as well as broader market access and penetration.

eMedia in its submission alleges that "MultiChoice's foreclosure decision is motivated by anti-competitive objectives" and that it is nothing else than "a desire to exclude some of the most popular immediate entertainment channels from the DStv platform and thereby undermining eMedia's ability to broadcast and produce rival content in competition with DStv's own content channels".

MultiChoice on the other hand alleges that the pay-TV operator has decided not to renew the channels carriage agreement with eMedia because of legitimate commercial reasons and that it had to cut eMedia's channels to make space for at least 3 new TV channels from the SABC that MultiChoice will be compelled to carry on DStv as part of changing legislation.

MultiChoice also alleges that eMedia's TV channels don't meet MultiChoice's strategic objectives for DStv around things like local content, black economic empowerment, value propositions, and a drive to cut down on repeat and rebroadcast content for DStv subscribers.

eMedia says MultiChoice has enough transponder capacity to carry both the set of existing e.tv channels as well as the SABC's channels on the Intelsat IS-20 and Intelsat IS-36 satellites. MultiChoice disagrees.

eMedia says that eMedia gets substantial advertising revenue because its e.tv-packaged channels were carried on DStv. Since these TV channels have broader carriage on DStv and therefore have more viewers, e.tv can make more in TV commercials.

eMedia told the Competition Tribunal it believes that it could lose as much as 19% of its existing advertising revenue if MultiChoice removes its e.tv-packaged TV channels.

eMedia says that MultiChoice which wants to dump its e.tv set of channels is preventing eMedia from "competing effectively as a channel provider" in South Africa. 

It will also make it more difficult for advertisers to reach the market segments of viewers reached by eMedia's TV channels currently.

MultiChoice is allegedly "leveraging its dominance in the pay-TV market to prevent effective competition with rival channel providers such as eMedia, with the intention of increasing its share of television advertising spend on its own channels, with the ultimate objective of undermining eMedia as a competitor".

MultiChoice is arguing that even if it no longer carries the channels from eMedia, it doesn't mean that MultiChoice will be taking over and absorbing the available advertising revenue that used to go to eMedia.