French media giant Canal+ is facing an early test in Africa after its $2 billion acquisition of MultiChoice, with the South African pay TV group preparing to face antitrust regulators over decade-old allegations of collusion.
South Africa’s Competition Commission on Monday accused MultiChoice and Altech, its set-top box supplier, of reaching an arrangement under which the latter would stay out of the pay TV market. MultiChoice, which became a Canal+ subsidiary in December, has denied wrongdoing.
The regulator is seeking to impose a penalty of 10% of MultiChoice’s domestic revenue, amounting to roughly 4 billion rand ($244 million). If MultiChoice is found guilty, the fine would hit Canal+. A date has not been set for the hearing. The French group told investors it expects to make €150 million ($176 million) in annual cost savings in the first year of the deal, rising to more than €400 million ($471 million) a year in savings later in the decade.