Media houses fined for collusion must contribute to development fund
The Competition Commission says following an investigation, it found that Caxton and Independent Media had agreed to offer similar discounts and payment terms to advertising agencies.
JOHANNESBURG - The Competition Commission says the two print media companies that have admitted to price fixing have been ordered to contribute millions of rands to the Economic Development Fund over and above their fines.
The commission says following an investigation, it found that Caxton and Independent Media had agreed to offer similar discounts and payment terms to advertising agencies.
They were fined over R2 million and R5 million respectively.
The commission's Sipho Ngwema says they will also have to contribute to the Economic Development Fund to help develop black-owned media and advertising agencies.
“Media companies are competitive so when they formed the company called Media Credit Coordinated, through that company, as competitors, they sat down and agreed on the prices and condition for advertising agencies. When companies are competing, the law prohibits them to share and coordinate prices.”