The Competition and Consumer Protection Tribunal has directed Pay-TV operator, Multichoice Nigeria, to provide subscribers on its DStv and GOtv platforms with a one-month free subscription.
Additionally, Multichoice has been fined N150 million for challenging the tribunal’s jurisdiction and disobeying its order, which had previously restrained the company from increasing the prices of its DStv and GOtv packages.
This ruling was delivered on Friday, June 7, by a three-member panel chaired by Justice Thomas Okosu.
The tribunal’s decision followed a suit filed by Barrister Festus Onifade, who had brought Multichoice and the Federal Competition and Consumer Protection Commission (FCCPC) before the tribunal over Multichoice’s decision to raise its subscription fees.
The tribunal initially restrained Multichoice from implementing the price increase pending the hearing and determination of Onifade’s motion on notice.
The FCCPC accused Multichoice of unjustly raising subscription fees without providing customers with the required one-month notice, leveraging this to seek interim orders against the pay-TV operator.
A three-member tribunal chaired by Saratu Shafii had earlier ruled in Onifade’s favor, restraining Multichoice from proceeding with the price increase set for May 1, 2024, pending the motion’s resolution.
Multichoice’s lawyer, Moyosore J. Onibanjo (SAN), filed a preliminary objection, urging the court to decline jurisdiction on Onifade’s suit and to strike it out, arguing that a similar case had previously been decided in Multichoice’s favor.
Onibanjo contended that price regulation falls under the president’s purview and that the tribunal was not the appropriate forum for such matters.
Onifade, however, argued that the issue at hand was whether Multichoice provided adequate notice regarding the May 1, 2024, subscription increase, not the regulation of prices.
He asserted that the eight-day notice issued by Multichoice was legally insufficient and that subscribers should receive at least a month’s notice. Onifade also requested that Multichoice be fined N1 billion for deliberately disobeying the tribunal’s interim order from April 29, 2024.
The FCCPC’s counsel, Nikiomari Abeke, indicated that he would abide by the tribunal’s direction concerning all the processes before it.
In its judgement, Justice Okosu referenced Section 39(2) of the FCCPC Act, affirming that the tribunal has jurisdiction over all commercial activities aimed at making a profit within Nigeria.
Justice Okosu concluded that the tribunal had the jurisdiction to preside over consumer rights cases like this one and resolved the issue against Multichoice.
He noted that Multichoice had already disobeyed its interim orders and condemned the company’s actions of hiking DStv and GOtv prices.
The tribunal dismissed Multichoice’s preliminary objection and imposed an administrative penalty of N150 million for non-compliance with the tribunal’s order. Multichoice was also ordered to provide Nigerian subscribers with a one-month free subscription.
The hearing for the plaintiff’s substantive suit is scheduled for July 3.
