DSTV Media Sales (DMS) has agreed, in a consent agreement, to pay an administrative penalty of R22 262 599.00 for colluding with other media houses on pricing, discounts and payment terms for advertising space.
The commission is asking that the Tribunal confirm the agreement. According to the statement released by the Competition commission, this will bring the accumulative penalty to R180 262 599.
The commission, in the settlement agreement submitted to the tribunal, alleges that media owners reached an agreement to offer similar discounts and payment terms to advertising agencies.
Accredited agencies were given a 16.5% discount on payments made within 45 days while non-accredited agencies received a 15% discount.
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In terms of the imposed penalty, excluding the administrative penalty:
- DMS undertakes to provide 25% in bonus airtime for every Rand of airtime by all Qualifying Small Agencies. The airtime shall be scheduled at the discretion of DMS. DMS will offer these terms for a period of three years from the date of confirmation of this consent agreement, subject to a total annual cap of R50 000 000.
- DMS undertakes to contribute R8 000 000 to the Economic Development Fund over three years from the date of confirmation of this consent agreement to enable the development of Qualifying Beneficiaries.