Caxton & CTP Publishers and Printers and Independent Media have agreed to pay millions of rands in fines after admitting to participating in price fixing and fixing of trading conditions in contravention of the Competition Act.
The print media companies concluded two separate agreements with the Competition Tribunal today.
In a media release, the Competition Commission confirmed Caxton will pay a fine of R5 806 890.14, and R2 090 480.45 to the Economic Development Fund over three years. It will also provide 25% bonus advertising space for every rand of advertising space bought by qualifying small agencies. This will be for three years, capped at R15 000 000 per annum.
Independent Media, meanwhile, will pay an administrative penalty of R2 220 603 and will contribute R799 417 to the Economic Development Fund over a three-year period, and provide 25% bonus advertising space for every rand of advertising space bought by qualifying small agencies, over three years and capped at R5 000 000. Independent has also said it would obtain its own credit insurance so small agencies are not required to commit any securities or guarantees in order to book advertising space.
Source: Media Online