Head of Communications at Competition Commission, Sipho Ngwema says three media companies have agreed to the settlement terms after being found involved in price fixing.
Ster-Kinekor, Primedia, and the SABC have admitted to being involved in price-fixing following investigations initiated by the Commission since 2011.
According to Ngwema, these three colluded through the Media Credit Coordinators (MCC), offering discounts at 16.5% to accredited advertising agencies and those who are not accredited were given 15%.
The biggest problem in terms of the act is that these three companies, who are competitors, shared information on what they were going to offer those companies who were approaching them. They were not supposed to because they are competitors. They are making it difficult for their customers because they cannot shop around - because they are offering the same thing. That is in breach of the Competition Act.— Sipho Ngwema, Head of Communications at Competition Commission
SABC will pay a fine of R31.8 million, while Primedia agreed to pay an administrative penalty of R9.6 million and Ster-Kinekor’s settlement agreement will see it pay a fine of R437,000.
All three companies will have to appear before the Competition Commission tribunal before the funds can be paid, says Ngwema.
He says it is important for these companies to appear before the tribunal so that they can be held accountable if they break the order.
To hear the rest of the conversation with Sipho Ngwema, listen below:
This article first appeared on CapeTalk : Three SA media companies agree to pay penalties for price-fixing