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Competition Matters – Media 24 referred to the Competition Tribunal for alleged predatory pricing

On 31 October 2011, the Competition Commission referred a case of predatory pricing against Media 24 to the Competition Tribunal.
According to the Commission’s release, Media 24 engaged in predatory pricing with regards to the advertising rates it charged in the community newspaper market in the Goldfields region of the Free State. The Commission’s investigation found that Media 24 implemented its predatory pricing strategy by charging advertising rates below costs for Goudveld Forum, one of the two community newspapers it controlled in the region. Goudveld Forum budgeted for and operated at a loss until its competitor (and complainant), Gold-Net News, was driven out of the market. The Commission found that Media 24’s strategy was intended to exclude competitors and to discourage future entry into the community newspaper market.
The Commission has asked the Tribunal to levy an administrative penalty of 10 percent on Media 24’s turnover.

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