Two media companies fined for cartel conduct
The Competition Commission fined two print media houses for cartel conduct on Friday.
Independent Media and Caxton admitted to participating in price fixing and fixing of trading conditions.
They have been fined R2 220 603 and R5 806 890.14 respectively.
The commission's Sipho Ngwema says this comes after an investigation from 2011 which found that various media companies agreed to offer similar discounts and payment terms to advertising agencies.
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"They sat amongst themselves as competitors and determined the price that agencies must pay through those discounts. It is prohibited under the Competition Act for companies who are competing to do that," says Ngwema.
"They also determined the conditions and trading conditions amongst themselves. Companies are supposed to compete they are not supposed to share pricing information because it gives the consumer very limited options, if at all, in terms of choices," Ngwema further explains.
Ngwema says the decision by the two companies also impacted on the development of small advertising agencies and fund contributors which would have helped bursaries.