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The Nairobian

DStv faces probe over soccer dominance claims

Business

By Otiato Guguyu | Nov 03, 2016

News agency Reuters reported that the Competition Authority of Kenya (CAK) is investigating Multichoice after local rivals complained it has unfairly monopolised broadcasts of popular European football matches.PHOTO: COURTESY

Multichoice East Africa is facing investigations over dominance claims.

This comes one month after the Popular European soccer pay-TV broadcaster slashed prices for its DSTV and Supersport packages in Kenya.

News agency Reuters reported that the Competition Authority of Kenya (CAK) is investigating Multichoice after local rivals complained it has unfairly monopolised broadcasts of popular European football matches.

The firm owned by South Africa’s Naspers, has the rights to broadcast all 380 games per season live across sub-Saharan Africa. “We are aware of the investigation and are cooperating with the CAK. We do not believe there are any transgressions on our part,” Meloy Horn, Naspers investor relations officer was quoted as saying by Reuters.

Multichoice, which entered the Kenyan market in 1995, holds the exclusive rights for the English Premier League, which attracts fanatical following in Kenya. Its market share was however challenged by Gateway Broadcast Services under the GTV brand, although the company flopped in 2009 due to a financial crisis.

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This is not the first time the local industry has tried to rein in on the company using the market regulator.

Several Pay TV players including Wananchi Group have on several occasions tried to have CAK intervene to declare Multichoice in contravention of the Competition Act and impose a penalty. Initially, CAK sided with the Multichoice competitors but backed down in 2013. The move was, however, reignited this year over concerns that the firm might be taking advantage of its dominance in pricing.

DSTV had jerked up prices by 15 per cent in September last year, which the company blamed on the depreciating shilling, six months after another bump in prices in March 2015.

Multichoice, however, announced a one-year tariff freeze for DSTV and instead lowered their prices last month.