French broadcaster Canal+, the new owner of MultiChoice and DStv, is facing scrutiny in South Africa following reports that it demanded a blanket 20% discount from suppliers — a move that has drawn the attention of the Competition Commission.
Canal+, which recently completed its largest-ever acquisition by taking control of MultiChoice and its subsidiaries including GOtv, Showmax, and DStv Stream, now oversees operations reaching more than 14 million customers across Africa. The merger also united two of the continent’s biggest producers of original television content.
However, controversy has surfaced barely months after the takeover. According to Business Times, Canal+ allegedly instructed all its service providers — from office suppliers to TV production companies — to reduce their invoiced amounts by 20%, temporarily suspending payments until the discounts are implemented.
Suppliers described the move as “hostile,” saying they were pressured to comply or risk contract termination. Industry sources added that even new contractors were being asked to agree to the same terms, indicating the discount request may be a company-wide policy rather than an isolated negotiation tactic.
The practice has sparked backlash from suppliers and industry groups, who argue that the move could breach the merger conditions set by the Competition Tribunal when approving Canal+’s acquisition of MultiChoice earlier this year.
The Competition Commission confirmed it has opened an investigation to determine whether Canal+’s actions violate the approval terms.
In response, MultiChoice said it has been pursuing aggressive cost-cutting measures for several years, which have continued under Canal+ management. The company noted that controlling costs is essential to sustain its operations and meet commitments to South Africa’s broadcasting ecosystem.
The acquisition represents a turning point in African broadcasting, combining Canal+’s financial resources and global content library with MultiChoice’s regional reach and local production power. Together, the merged group produces around 10,000 hours of local content annually in up to 35 languages, making it one of the continent’s largest entertainment providers.
On October 13, 2025, Canal+ announced it had acquired 94.39% of MultiChoice’s shares through its R125-per-share mandatory buyout offer. With over 90% of shareholders accepting the bid, the company initiated a “squeeze-out” process under South Africa’s Companies Act to acquire remaining shares.
Following approval from the South African Reserve Bank, MultiChoice shares are set to be suspended from trading on October 27 and fully delisted from the JSE and A2X by December 10, 2025.
Canal+ has positioned the merger as a long-term investment in African storytelling and media expansion, promising greater access to both global and local programming and deeper collaboration across African markets.
Credit: businesstech.co.za
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