South Africa's competition watchdog is investigating a complaint over a possible breach of the merger conditions.
Less than a year after completing its acquisition of South African media company MultiChoice, French media giant Canal+ has declined to comment on allegations that it breached the conditions attached to the takeover. The company is now facing scrutiny from South Africa's Competition Commission.
When approving the deal, the regulator required Canal+ not to retrench MultiChoice employees for three years. However, according to MyBroadband insiders, the company may have found a way around this condition by encouraging employees to accept voluntary severance packages amid deteriorating working conditions and the introduction of allegedly unachievable performance targets.
Sources claim that at least 600 employees have already accepted voluntary severance packages. In particular, DStv resellers were allegedly required to secure at least 30 new subscribers per outlet per month — a target insiders describe as unrealistic.
Canal+ said it does not comment on anonymous allegations or unsubstantiated claims, stressing that all organisational decisions are undertaken in accordance with applicable laws, regulatory requirements and established governance processes. The company also reiterated its commitment to supporting employees, business partners and suppliers throughout the integration process.
South Africa's Competition Commission confirmed that it received a complaint in mid-May regarding the impact of the merger on employees of third-party service providers contracted to the merged entity and has launched an investigation.
According to insiders, after the voluntary severance programme ended, MultiChoice began a restructuring process under its Target Operating Model (TOM). The restructuring reportedly flattened the company's management structure, with some employees being offered lower-level positions. Sources allege that many staff view the changes as an attempt to pressure employees into leaving the company.
The Canal+ takeover of MultiChoice had already drawn scrutiny from South African lawmakers, who previously raised concerns over potential job losses, cuts to local content and the future of the Showmax streaming service.
Source: The Citizen
