SABC, Primedia, Ster-Kinekor fined millions for price-fixing | Business | M&G

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The Competition Tribunal has confirmed, as orders, three consent settlement agreements with the SABC, Primedia and Ster-Kinekor.

In terms of the settlement agreements, the SABC will pay an administrative penalty of over R31.8-million and provide 25% bonus advertising space for every rand of advertising space bought by qualifying small agencies over a period of three years, capped at R40-million annually.

They will further contribute over R17.7-million to the Economic Development Fund over a period of three years. Primedia will pay an administrative penalty of over R9.6-million and provide 25% bonus advertising space for every rand of advertising space bought by qualifying small agencies over a period of three years, capped at R24-million annually.Ster-Kinekor will pay a fine of just under R437 000, and will provide 25% bonus advertising space bought by qualifying small agencies over three years, capped at R1-million annually.

MCC accredited agencies were offered a 16.5% discount for payments made within 45 days of the statement date, while non-members were offered 15%.Furthermore, the commission’s investigation found that the implicated companies employed services of an intermediary company called Corex to perform risk assessments on advertising agencies, for the purposes of imposing a settlement discount and terms on advertising agencies.

“The Commission found that the practices restricted competition among the competing companies as they did not independently determine the discounts and thereby fixed the price and trading terms in contravention of the Competition Act,” the Commission said in a statement. —

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