Caxton and Capital Newspapers Take Media24/Novus Dispute to Constitutional Court

Caxton, listed on the JSE, and the privately-owned Capital Newspapers, have declared that they are bringing their legal dispute straight to the Constitutional Court (ConCourt) after the Competition Appeal Court ruled that Media24 can close various print publications, including Beeld, Rapport, City Press, and Daily Sun.

This ruling, issued on Christmas Eve 2024, paves the way for Media24 to embark on significant restructuring that encompasses halting print operations and selling its distribution arm, On the Dot, to Novus Holdings.

Read: ‘Media24’s merger aimed to crush print competitors’

Paul Jenkins, Caxton’s chairperson, has expressed serious concerns regarding the implications of this decision on the media landscape in South Africa.

“The closure of these Media24 newspapers signifies a critical juncture for journalism in our country. We believe that an alternative legal interpretation might lead to a different result,” he stated over the weekend.

Jenkins, along with other industry representatives, has cautioned that the loss of these longstanding publications could reduce journalistic diversity and restrict access to independent news for South Africans.

Media24 first spoke of its restructuring plans in mid-2024 due to ongoing financial difficulties arising from declining advertising revenue and a shrinking readership in print.

The restructuring will involve the closure of several regional and national newspapers, exiting the print distribution market, and selling On the Dot to Novus Holdings. The Competition Commission gave the go-ahead for the sale in October 2024, determining that it did not present significant anti-competitive issues.

Read:
The battle for SA journalism [Dec 2024]
Media24-Novus deal faces legal review amid competition concerns [Nov 2024]
Media24 to retain all journalists of to-be-closed newspapers [Aug 2024]

Nevertheless, Caxton and the Pietermaritzburg-based Capital Newspapers have vehemently opposed the deal, arguing that it could further undermine competition within the South African media landscape.

They have voiced apprehensions that this move might create a “void in print media,” especially in smaller towns and rural areas where independent newspapers are already facing challenges to stay afloat.

In December, the Competition Appeal Court dismissed their urgent request to halt the sale, effectively approving the transaction.

Despite this setback, Jenkins and his fellow appellants remain resolute. Their appeal to the ConCourt represents a final attempt to reverse the ruling in order to protect media plurality in South Africa.

Broader implications …

Caxton and Capital Newspapers have highlighted the wider consequences of this case, warning that the loss of these newspapers would create a reporting vacuum, particularly for lower-income individuals who may not have consistent access to online news platforms.

As the case progresses to the highest court in South Africa, the outcome could set a pivotal precedent regarding media competition and consolidation across the nation.

A verdict in favor of Caxton and Capital Newspapers could compel Media24 to reconsider its exit strategy, possibly preserving some of its printed publications. Conversely, a defeat for the appeal would signify the end of an era for some of South Africa’s most prominent newspapers.

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