The Competition Commission has officially referred MultiChoice South Africa and decoder manufacturer Altech UEC to the Competition Tribunal for prosecution. The referral stems from a 2014 agreement in which the companies allegedly engaged in market division, a practice where potential competitors agree not to compete for specific customers or services. The Commission is now seeking administrative penalties totalling up to 10% of each company’s annual turnover.
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According to the investigation, the two entities reached an agreement in February 2014 that ensured Altech UEC would not compete directly with MultiChoice in the pay-TV market. At the time, Altech was MultiChoice’s primary supplier of set-top boxes.
Evidence of this dynamic appeared in September 2014 during the launch of the Altech Node, a satellite-connected device featuring video-on-demand and smart-home software. Despite the Node’s capabilities, then-Altech CEO Craig Venter stated the product was “not a direct challenge to MultiChoice,” citing the broadcaster’s status as an essential customer. While Altech had offered MultiChoice a partnership on the Node, those discussions were ultimately unsuccessful. The Node struggled to gain retail traction and was eventually wound down in late 2015.
The Commission’s referral comes 12 years after the alleged conduct, though a specific reason for the timing was not provided. Altech UEC was sold by Altron in 2019 to Skyblu Technologies, but the legal proceedings address the historical conduct under previous ownership.
In response to the referral, both companies issued statements:
- Altron Group: Confirmed awareness of the referral and stated it has cooperated fully with the Commission, welcoming the opportunity to participate in the tribunal proceedings.
- MultiChoice: Firmly denied any breach of competition law, noting that the allegations involve a historical supply agreement that concluded in 2015. The company stated it is currently considering the referral and will respond within the prescribed timelines.
