The Competition Commission will investigate whether merger conditions between Canal+ and MultiChoice are being adhered to.
The Competition Commission will probe decisions taken by Canal+ following its takeover of MultiChoice Group, including the shutting down of streaming service Showmax and Canal+’s adherence to the merger conditions the commission set out prior to approving the deal.
The announcement was made at a meeting of parliament’s portfolio committee on communications & digital technologies on Tuesday, which also heard presentations from communications regulator Icasa, the communications department and the department of trade, industry & competition.
The committee has since announced special oversight visits to members of the broadcasting industry amid concerns over the closure of Showmax, the shifting of production capacity overseas and other matters arising from the Canal+ takeover.
Committee chair Khusela Diko said the visits would take place on 31 March and 1 April 2026, taking in e.tv, MultiChoice and other commercial broadcasters.
Canal+’s takeover of MultiChoice was approved with conditions by the competition authorities. MultiChoice’s broadcasting licences were carved out and housed in a separate entity, LicenceCo, whose ownership is majority South African, allowing the deal to avoid triggering breaching Icasa rules.
Voting rights
Portfolio committee members from the ANC, EFF and MK Party questioned how Groupe Canal+ managed to acquire effective control of MultiChoice Group without Icasa ever making a formal determination on the deal.
The way in which Canal+ structured its purchases of MultiChoice shares over the years also played a role.
Read: DStv’s high entry price is killing subscriber growth, says Canal+
Icasa executive for licensing and compliance Fikile Hlongwane explained that because the acquisition was structured as a series of share purchases rather than a direct transfer of MultiChoice’s broadcast licence, sections 13 and 31(2A) of the Electronic Communications Act — which speak to foreign ownership restrictions — were never triggered.
“Canal+ or any other foreign shareholder does not hold voting rights in respect of its shareholding that exceed the 20% threshold prescribed by the ECA,” Hlongwane told the committee. Canal+ limited its voting rights to 20% while acquiring shares, even though it held more than that in equity.
Another issue raised by committee members concerns the level of access the SABC will have to broadcasting sub-rights for sporting events of national interest. MultiChoice is also in the process of acquiring content from the SABC, a matter currently before the Competition Tribunal. “We are still reviewing it and will update you as it progresses,” said Icasa chairman Mothibi Ramusi. — (c) 2026 NewsCentral Media
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