Competition commission to probe media

2011-08-01 07:27

The Competition Commission is investigating “information-sharing and market allocation between the major publishing groups” in KwaZulu-Natal.

This was contained in the commission’s report about its investigation into Naspers’ Media24 division planning to buy a 50% stake of the Natal Witness, according to Business Report.

The commission said it had found evidence that the major publishing groups in KwaZulu-Natal were sharing information and market allocation.

The commission’s report reads: “The coordination seems to be centred on the paid-for market but may also extend into the free newspaper market.

“This finding may not be merger specific but it is indicative of a possible history of coordination in this market and it will be investigated further by the commission separate to the merger investigation.”

In 2000, Media24 acquired 50% of the issued-share capital of Natal Witness from the Craib family, which had controlled the newspaper from 1942.

Last July, Media24 signed an agreement to buy the remaining 50% of The Natal Witness Printing and Publishing Company, the holding company of the Witness.

The Competition Commission has recommended conditional approval for this deal.

However, it would start investigating “very soon” the possible information sharing between KZN media companies, said Martin van Hoven, manager of mergers and acquisitions at the commission, according to Business Report.

The commission was concerned that media companies were sharing their provincial circulation figures with each other.

This could lead to a lessening of the competitive environment, which would force advertisers to buy advertising space across product and geographic space.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/World

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.