The Portfolio Committee on Communications welcomes the decision by the Competition Commission to recommend that the Competition Tribunal should fine Media 24, 10% of its annual turnover for predatory pricing.
The ruling by the Competition Commission vindicates the view of the Committee after the engagement with stakeholders during the Indaba on the transformation of print media around September 2011.
During these discussions community newspapers told the committee that their major problem was the abuse of dominance by the well established print media houses which through predatory pricing drives them out of business.
The Competition Act prohibits predatory pricing, which involves pricing below average. This follows a complaint by Berkina Twintig (PTY) Ltd trading as Gold-Net on January 2009, in which it alleged that Media 24 engaged in predatory pricing, which resulted in Gold-Net exiting the market in 2009.
Issued by the Chairperson for the Portfolio Committee on Communications Mr Sikhumbuzo Eric Kholwane.
Enquiries:
Yoliswa Landu (Ms)
Parliamentary Communication Services
Tel: 021 403 8203
Cell: 073 738 0182
E-mail: ylandu@parliament.gov.za
Committee welcomes recommendation by Competition Commission
