Three SA media companies agree to pay fines for pricing


The head of the Competition Communications Commission, Sipho Ngwema, said three media companies had agreed to the terms of the deal after being found involved in setting prices.

Ster-Kinekor, Primedia and SABC admitted to participating in price-fixing following investigations initiated by the Commission since 2011.

According to Ngwema, these three mediated through the Media Credit Coordinators (MCC), offering discounts of 16.5% to accredited advertising agencies and those who are not accredited received 15%.

The biggest problem in terms of the act is that these three companies, which are competitors, shared information about what they would offer to those companies that were approaching them. They should not because they are competitors. They are making it difficult for their customers because they can not shop around – because they are offering the same thing. This is in violation of the Competition Law.

Sipho Ngwema, Head of Communications of the Competition Commission

SABC will pay a fine of R31.8 million while Primedia agreed to pay an administrative fine of R9.6 million and the Ster-Kinekor settlement agreement will pay a fine of R $ 337,000.

All three companies will have to appear before the Competition Board before the funds can be paid, says Ngwema.

He says it is important that these companies appear before the court so they can be held accountable if they break the claim.

To listen to the rest of the conversation with Sipho Ngwema, listen below:


Source link