New DStv owner in trouble over alleged approval violation
The Competition Commission in South Africa has confirmed it has opened an investigation to determine whether new DStv owner Canal+ has violated the approval terms following reports that the French pay-TV provider demanded a blanket 20% discount from suppliers, according to report.
Canal+ recently took ownership of MultiChoice and its subsidiaries, including DStv, GOtv, Showmax, and DStv Stream, after completed its largest-ever acquisition- giving it control over operations serving more than 14 million customers across Africa and combines two of the continent’s biggest producers of local television content.
However, according to the report, since taking over, Canal+ has reportedly instructed all service providers to reduce their invoiced amounts by 20% and temporarily suspended payments while the discounts are negotiated.
Business Times reported that, the request has been applied broadly, from office suppliers to television production houses.
A service provider told the publication that the company’s approach had been “hostile,” claiming that suppliers were under pressure to agree or risk having their contracts terminated.
Industry insiders said even new contractors were being asked to agree to the same discount, suggesting a company-wide policy rather than an isolated dispute.
This thereafter prompted outcry from suppliers and an actors’ industry body, which has questioned whether such unilateral action violates the merger conditions imposed by the Competition Tribunal.
The Competition Commission, which approved Canal+’s takeover of MultiChoice earlier this year under strict public-interest conditions, confirmed to Business Times that it would “establish whether there has been a breach of the conditions of approval of the merger.”
In response to questions about the discount and payment freeze, MultiChoice said the company had been implementing aggressive cost-cutting measures for several years, and that this continued after the merger.
It added that managing costs was important to ensure the group could continue to support the South African and African broadcasting ecosystem and meet the public interest commitments made to the Competition Tribunal.
The acquisition marks a major shift for both companies. Canal+ brings the financial scale and content library of a large European broadcaster, while MultiChoice offers extensive regional reach and local production capacity.
Together, the combined group produces about 10,000 hours of local content each year in as many as 35 languages, strengthening its position as one of the largest media players on the continent.
On 13 October 2025, Canal+ announced that it had secured 94.39% of MultiChoice’s shares following its R125-per-share mandatory buyout offer.
With more than 90% of shareholders accepting the offer, Canal+ invoked Section 124(1) of the Companies Act to begin a “squeeze-out” process, forcing remaining shareholders to sell their stakes.
The South African Reserve Bank has approved the transaction, and Friday, 24 October 2025, will be the final day of trading MultiChoice shares on the JSE and A2X.
The shares will be suspended on Monday, 27 October, ahead of full delisting on 10 December 2025.
Source: businesstech.co.za including image
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