South African Competition Commission Probes Canal Plus Over MultiChoice Supplier Discount Demands

Competition Commission Initiates Probe into Canal Plus Practices

French media giant Canal Plus is currently under scrutiny by South Africa's Competition Commission following allegations that it has demanded a blanket 20% discount from suppliers of MultiChoice, its newly acquired subsidiary. The investigation will assess whether these actions constitute a breach of the conditions set during the approval of the significant merger.

Reports indicate that since taking effective control of MultiChoice, Canal Plus has instructed numerous service providers to reduce their invoiced amounts by a fifth and has temporarily suspended payments while these discounts are negotiated. This directive has reportedly been applied broadly, affecting a range of entities from office suppliers to television production houses.

Supplier Outcry and MultiChoice's Response

The alleged demands have triggered considerable outcry from affected suppliers and an actors' industry body, who question whether such unilateral actions violate the public interest conditions imposed by the Competition Tribunal. Some suppliers have described Canal Plus's approach as 'hostile,' with concerns that they are being pressured to agree or risk contract termination.

In response to the allegations, MultiChoice stated that these adjustments are part of aggressive cost-cutting measures that the company has been implementing over the past two years, which have continued following the completion of the Canal Plus merger. MultiChoice indicated it is engaging with suppliers regarding these measures, emphasizing the importance of managing expenditure to ensure its long-term role in the South African and African broadcasting ecosystem.

The MultiChoice Takeover: A Recent Development

The probe comes on the heels of Canal Plus's successful acquisition of MultiChoice. Canal Plus announced it had secured 94.39% of MultiChoice's shares following its R125-per-share mandatory buyout offer, effectively gaining control on September 22, 2025. The acquisition culminated in the formal announcement of the compulsory acquisition of all remaining shares by October 27, 2025.

The South African Competition Commission initially recommended the approval of the acquisition with conditions on May 21, 2025, which was subsequently approved by the Competition Tribunal on July 23, 2025. Key conditions included:

• A three-year moratorium on retrenchments.
• Increased shareholding for historically disadvantaged persons (HDPs) and workers.
• Commitments to supplier development and continued procurement of local news content.
• MultiChoice remaining incorporated and headquartered in South Africa.

To comply with foreign ownership restrictions, MultiChoice (Pty) Ltd, the South African license holder, was carved out into an independent entity majority-owned and controlled by HDPs. MultiChoice shares ceased trading on the Johannesburg Stock Exchange (JSE) and A2X on October 24, 2025, with full delisting anticipated by December 10, 2025.

Implications for the South African Media Landscape

The Competition Commission has confirmed that it will 'establish whether there has been a breach of the conditions of approval of the merger.' This investigation is critical as the merger represents Canal Plus's largest acquisition to date, creating a global media and entertainment powerhouse serving over 40 million subscribers across nearly 70 countries. The outcome of the probe will have significant implications for supplier relations and adherence to regulatory commitments within South Africa's broadcasting industry.