Primedia to provide free ad space to SMMEs following Competition Commission price fixing probe
This follows the Competition Tribunal’s finding that between September 2004 and March 2018. media companies, with the backing of an industry association Out of Home Media South Africa, contravened the Competition Act.
Primedia's Sandton offices. Picture: Primedia Outdoor
JOHANNESBURG - A consensus regarding fixed payment complaints lodged against a number of complainants, including Primedia, has been reached with the Competition Commission.
This follows the Competition Tribunal’s finding that between September 2004 and March 2018, media companies, with the backing of an industry association Out of Home Media South Africa (OHMSA), contravened the Competition Act.
According to the Competition Tribunal, the companies did this by entering into collusive agreements that resulted in price fixing and trading conventions, going against legislation.
It was in December 2018 that the Competition Commission lodged a complaint against media companies under OHMSA that “agreed to develop a code of practice and standards that fixed payment and settlement terms, penalties and cancellation fees that they impose on advertising agencies, advertisers and poster buying specialists that purchase advertising space from them.”
After the probe, the Competition Commission referred the complaint to the Competition Tribunal for adjudication.
“Primedia, one of the respondents in the matter, has settled with the Commission agreeing to pay an administrative penalty of R2,717,950,” said the Competition Commission.
It added that Primedia also “agreed to provide free out-of-home advertising services to small, medium and micro enterprises (SMMEs) owned by historically disadvantaged persons to the value of R1,358,975 over a period of 12 months.”
The Competition Commission welcomed the consensus with Primedia Outdoor.