MultiChoice Faces Prosecution Over Alleged Market-Sharing Deal with Decoder Supplier
MultiChoice South Africa is at the centre of a major competition case after South Africa’s Competition Commission referred it to the Competition Tribunal for prosecution over an alleged anti-competitive agreement dating back to 2014.
In its referral, the Commission accuses MultiChoice and Durban-based decoder manufacturer Altech UEC of entering into a market-division arrangement in February 2014, under which Altech allegedly agreed not to compete in the pay-TV market dominated by MultiChoice.
The regulator argues that such agreements violate the Competition Act, which prohibits competitors—or potential competitors—from dividing markets by allocating customers, suppliers, or services. If found guilty, both companies could face administrative penalties of up to 10% of their annual turnover.
According to the Commission’s findings, MultiChoice had long relied on Altech UEC as a key supplier of set-top boxes. Investigators believe this commercial relationship may have influenced the alleged agreement, effectively preventing Altech from entering the pay-TV space and competing directly with its major client.
The case draws further attention due to events that followed months later. In September 2014, Altech launched the Altech Node, a satellite-enabled device offering video-on-demand, internet telephony, and smart-home features. However, the product was explicitly positioned as not competing with MultiChoice’s core pay-TV services.
At the time, then-Altech CEO Craig Venter described MultiChoice as an “important customer” and confirmed that while partnership discussions had taken place, they did not materialise. The Node ultimately failed to gain traction and was discontinued by late 2015, with partial refunds issued to customers.
The Commission’s case suggests that Altech’s decision not to directly challenge MultiChoice may not have been purely strategic but influenced by a prior agreement aimed at preserving business ties.
Altech UEC was later sold in 2019 by Altron to Skyblu Technologies, a subsidiary of Chinese electronics firm Shenzhen Skyworth Digital Technology.
In response to the referral, Altron stated that it is aware of the proceedings and has cooperated fully with the investigation, adding that it remains committed to legal and ethical business practices.
The Commission has not disclosed what triggered the referral more than a decade after the alleged conduct.
However, the case is expected to test competition enforcement in South Africa’s broadcasting and technology sectors, particularly around supplier relationships and market dominance.
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