Regulators emphasised that access to “sports of national interest” remains a key issue under discussion, noting that the broadcasting of such events is critical for the SABC’s public mandate.
Image: File photo: Reuters
Banele Ginindza
South Africa’s communications regulators have said the merger between Canal Plus and MultiChoice must safeguard the interests of the South African Broadcasting Corporation (SABC), including ensuring access to major national and sporting events.
Appearing before Parliament’s Portfolio Committee on Communications and Digital Technologies on Tuesday, the Independent Communications Authority of South Africa (Icasa) and the Competition Commission said ongoing negotiations were aimed at creating a fair competitive environment for the public broadcaster.
Regulators emphasised that access to “sports of national interest” remains a key issue under discussion, noting that the broadcasting of such events is critical for the SABC’s public mandate.
Icasa chairperson Mothibi Ramusi said concerns raised by the SABC around content ownership and access were being actively addressed.
"SABC raised the same issues regarding content ownership. Several issues were raised, and sports of national interest are still under discussio, including the emergence of local producers as content owners," Ramusi said.
"From the news side, SABC and other local news outlets should be accommodated by the merged entity for a certain period. How it manages the boutique going forward, we will have to assess the conditions."
At the same time, Icasa noted it had not been formally informed about the reported winding down of Showmax and would investigate the matter further as part of its oversight role.
Ramusi also confirmed that a separate case involving MultiChoice’s acquisition of SABC content is currently before the Competition Tribunal, with regulators continuing to assess whether it constitutes a merger and whether it complies with competition and public interest requirements.
"We are still reviewing it and will update you as it progresses," Ramusi said, adding that Icasa is working closely with other authorities through a memorandum of understanding to assess the broader implications of such deals.
He highlighted that government engagement, including input from the Department of Communications and Digital Technologies and the Department of Trade, Industry and Competition, has already addressed concerns around content exclusivity on free-to-air platforms.
Ramusi said other aspects that Icasa was seized with for some time included an area that's evolving quite rapidly seeing other content being available
"The listing on the JSE is unprecedented. When we look at the public interest, we look at the sectoral impact. MultiChoice has been supporting many activities, and by listing on the JSE, it supports the stock exchange, jobs, creative industries, and the beneficiation (or lack thereof) of local content producers," he said.
"The issue for us is that digital broadcasting will transform the audiovisual space."
Icasa's executive for licensing and compliance, Fikile Hlongwane, reassured Parliament that MultiChoice—now referred to as LicenceCo—remains a South African company despite the merger.
"Yes, MultiChoice, now called Licence Co is still operating as a South African company, governed by the licence for broadcasting entity though we are amenable," she said.
Hlongwane said there is no major foreign takeover of LicenceCo or Canal Plus does not control LicenceCo, which is 80% owned South Africans through empowerment schemes including Phuthuma Nathi.
"Despite its limitations, we must highlight that the ECA protects South African ownership by restricting foreign control to 20% of directors, thereby limiting foreign ownership to 20%.
"The question relating to MultiChoice-Canal issue, the public interest, and the act framework: when we assess a merger, we look at the competition aspect and the public interest component."
Hlongwane said while the merger in Canal Plus did not raise competition concerns, there were public interest concerns, including confidentiality, employment, promotion of ownership by historically-disadvantaged persons and workers, supplier development and corporate social investment initiatives.
The conditions include providing access to an international sporting event where South African national teams or individuals are participating. The merged entity will identify opportunities to increase the availability of locally produced South African general entertainment content internationally.
The conditions also included listing of Canal+ on the JSE, subject to obtaining all regulatory approvals.
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