SECTOR 2 Scores: Individual scores: 1 Country does not meet indicator 2 Country meets only a few aspects of indicator 3 Country meets some aspects of indicator 4 Country meets most aspects of indicator. 5 Country meets all aspects of the indicator Average score: n/a (2008 = not scored; 2006 = not scored) 2.5 Adequate competition legislation/regulation seeks to prevent media concentration and monopolies. There are effective competition laws in place and a competition commission which is regarded as a strong and independent body. Although there are obvious tendencies towards monopolies, especially in the print sector, no challenges in this regard have been brought before the commission yet. One exception was a case against the publishing house Caxton which tried to undercut another local publication with its cheap advertising rates, made possible – it was argued - by the parent company cross subsidising the new local Caxton publication. As soon as the competitor was forced to close down, Caxton would immediately increase its advertising rate to a more realistic, profitable level. In this specific case, however, the market itself resolved the issue: the Caxton paper did not survive and the commission therefore did not have to rule in this case. In the broadcasting sector the Electronic Communications Act prescribes that no person may control more than one commercial television or more than two FM or two AM commercial radio stations. Such stations should not have similar licence areas. Furthermore, no person who controls a newspaper may have financial control of any broadcasting licensee. In May 2010, ICASA published a discussion paper which proposes a relaxation of regulations limiting multiple ownership of broadcasting stations. These are now regarded as potentially stifling growth in the sector. 32 AFRICAN MEDIA BAROMETER SOUTH AFRICA 2010