MultiChoice lives up to its name and is not a monopoly

Understanding detrimental monopolisation is something few people understand, including Icasa and the viewing publicRafa Nadal of spain: No choice in sports viewing may mean no sports to view. Picture: USA TODAY SPORTS/ROBERT DEUTSCHE

Nobody likes a monopoly. Eskom’s monopoly is the reason for high electricity prices and blackouts. But a lack of understanding of the true definition of a detrimental monopoly can lead to even more detrimental consequences. The SA and Nigerian governments’ clampdown on “exclusivity agreements” in the pay-TV market are examples of doing more harm than good by applying a misunderstanding of monopolisation and, in the process, damaging successful private-sector companies.

Detrimental monopolisation, in which markets are absolutely incontestable, is almost exclusively the result of government interference — and the proposed regulations on sports broadcasting in SA are no exception. It is precisely because of the necessity for competition that exclusivity agreements are concluded. The broadcaster that offers the sports bodies the best deal, wins the rights. It is important to recognise that the decision for this lies with the sports bodies, not pay-TV providers or government. To construe the outcome of this process as a monopoly is to misunderstand the concept, something widely done by government, regulator Independent Communications Authority of SA , and the public.

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