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South Africa: Competition Commission fines publishers for colluding

 |  February 18, 2018

Newspaper publisher Caxton has been fined 5.8 million South African rand (US$498,900) and the Independent Group ZAR2.2 million (US$189,200) for colluding on the prices they charged to advertisers‚ the South African Competition Commission said on Friday, February 16.

In addition to the fines for price-fixing‚ the media companies have agreed to contribute to black economic empowerment development funds and to offer advantageous deals to small‚ black-owned advertising agencies.

These fines were delivered after Naspers’s pay-TV subsidiary DStv was given a ZAR 22.3 million (US$1.9 million) fine.

“The matter relates to a November 2011 investigation which found that‚ through the Media Credit Co-ordinators (MCC)‚ various media companies agreed to offer similar discounts and payment terms to advertising agencies that place advertisements with MCC members‚” the Commission’s statement said.

The Commission found MCC-accredited agencies were offered a 16.5% discount‚ while non-members were offered 15%.

Full Content: The Times Live

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