Three advertising companies – Circus Advertising Company Ltd, P&P Link Co. Ltd, and Maurice Publicité Ltd – have been found in breach of section 41 of the Competition Act 2007 by the Commissioners of the Competition Commission.
The breach involves their collaboration in the supply of media space through Touch Point Ltd, a media buying company based in Moka, jointly controlled and managed by them.
Touchpoint buys media space from media owners, which it then resells to advertising agencies or to client advertisers for purposes of disseminating advertising contents.
According to the Competition Commission, the investigation revealed that the three advertising agencies, through Touch Point Ltd, “participated in collusive conducts prohibited under section 41 of the Act.”
“They reached an agreement having the object of restricting supply of media space by directing Touch Point Ltd not to actively sell media space to clients of other communication agencies which are members of the ‘Association of Communication Agencies’ (ACA), of which the main parties are also members.”
Concerted
“Furthermore, owing to their direct control and involvement in Touch Point Ltd as directors and as members of its Executive Management, the main parties have been found to have participated in concerted practices in as much that they are competitors in the supply of media space.”
“This finding is based on the frequent contacts, communications and strategic commercial exchanges among the main parties more specifically on Touch Point Ltd’s media space pricing, purchase value and purchase prices which, in the absence of adequate ring-fencing measures, artificially increase market transparency and are capable of facilitating coordination of their own commercial conduct on the market.”
“Considering the scope of the parties’ conducts which are found to be collusive and the provisions of section 58, the Executive Director recommended the imposition of wide-ranging directions on the main parties.”
While no financial penalty has been imposed, the three advertisers have been directed to disclose relevant information for the next three years – 2026.
Source: Competition Commission of Mauritius
