Nigeria’s Competition and Consumer Protection Tribunal, based in Abuja, fined Multichoice Nigeria N150 million for disputing the court’s jurisdiction and ordered the business to provide a one-month free DStv and GOtv subscription to subscribers in the country.
A three-judge panel chaired by Thomas Okosu issued the decision today.
On Wednesday, April 24, 2024, Multichoice announced a price change for its DStv and GOtv bundles. The new pricing regime was meant to take effect on May 15.
The Tribunal ruled that Multichoice is “restrained from going ahead with impending price increase schedule to take effect from May 2024 pending the hearing and determination of the Motion on Notice already filed before this Honourable Tribunal”.
The Tribunal ordered that all parties in the suit appear before the panel on May 7 for a hearing and determination of the motion. Multichoice Nigeria then challenged the jurisdiction of the Competition and Consumer Protection Tribunal (CCPT) to prevent it from raising the rates of its DStv and GOtv bundles.
M.J. Onibanjo (SAN), Multichoice’s lawyer, told the CCPT via his application on Tuesday that it should deny jurisdiction over Festus Onifade’s claim because a similar price disagreement case had previously been ruled in favor of his client.
The lawyer further stated that Multichoice’s planned rise on April 24, 2024, is a finished act because its systems have been adjusted accordingly.
Despite the court ruling ordering a stay of action, Multichoice increased its DStv and GOtv subscription costs by 25% on May 1.
The three-person panel, chaired by Justice Thomas Okosu, concluded in its ruling today that the Tribunal had jurisdiction throughout the federation and overall commercial activities aimed at a profit under Section 39(2) of the FCCPC Act.
The Tribunal highlighted that Multichoice had previously disregarded its interim instructions and that raising DSTV and GOTV pricing is unacceptable and should not be tolerated. The panel dismissed Multichoice’s preliminary objection for violating its interim orders.
As a result, the Tribunal imposed an administrative penalty on Multichoice for failing to comply with the Tribunal’s ruling, stating that “the first defendant is at this moment mandated to pay N150 million penalty.”
It further stated that the satellite pay-tv provider should reimburse customers with internet subscriptions: “Multichoice is now ordered to give free viewing to Nigerians for one month.
