MultiChoice Antitrust Dispute Adds Strain to Canal+ Expansion Plans
South African regulators are pushing ahead with a competition case that now places Canal+ at financial risk after the MultiChoice takeover
A regulatory dispute in South Africa is emerging as one of the first major liabilities linked to Canal+’s takeover of MultiChoice, placing potential financial exposure on the French broadcaster only months after the acquisition closed.
The South African Competition Commission said it is pursuing a case against MultiChoice and technology supplier Altech over allegations tied to the country’s pay television market. According to the regulator, the companies reached an understanding that prevented Altech from entering the sector as a competitor.
Authorities are seeking a sanction worth 10% of MultiChoice’s local revenue. Based on current estimates, the amount could reach around 4 billion rand, equivalent to roughly $244 million.
The case itself predates Canal+ ownership by years, but responsibility for any eventual penalty would now sit with the French media group, which absorbed MultiChoice into its operations in December.
MultiChoice has disputed the accusations and maintains it did not breach competition rules. A tribunal hearing has not yet been scheduled.
The proceedings arrive during a period when Canal+ is attempting to extract value from one of its largest international expansion moves. The company told shareholders the transaction was expected to generate €150 million in annual savings during the first phase of integration, with projected efficiencies later climbing beyond €400 million per year.
The South African matter also places renewed attention on the economics of the continent’s pay TV business, where operators are dealing with subscriber pressure, streaming competition and rising operating costs while pursuing scale through consolidation.
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