The Competition and Consumer Protection Tribunal has ordered Pay-TV operator, Multichoice Nigeria to give subscribers on the DStv and GOtv platforms one month of free subscription and fined Multichoice N150 million for challenging the court’s jurisdiction and disobeying its order to not increase prices.
The rulings were made on Friday, 7th June, by a three-man panel chaired by Justice Thomas Okosu.
Barrister Festus Onifade took Multichoice and the Federal Competition and Consumer Protection Commission (FCCPC) to the tribunal over the pay-tv operator’s decision to raise subscription fees.
The Tribunal restrained MultiChoice from raising its rates until the hearing and determination of a motion filed by Barrister Onifade.
The FCCPC accused the Pay TV of raising fees without proper notice to customers and sought interim orders against Pay TV.
A three-member tribunal chaired by Saratu Shafii ruled in favour of Onifade by restraining Multichoice from increasing prices, pending further court proceedings.
Multichoice’s lawyer, Moyosore .J. Onibanjo (SAN), filed a preliminary objection to the suit, arguing that such a price dispute had been decided in favor of the client before.
Onifade argued that the issue was about whether Multichoice Nigeria gave adequate notice regarding the May 1, 2024 price TV subscription increase, not about price regulation or increase.
“It is our submission that the 8-day notice issued by Multichoice Nigeria is insufficient in law. A monthly subscriber should be given at least a month.
“Dismiss this application (by Multichoice )for being a waste of time of the court,” Onifade prayed.
The Tribunal was asked to instruct Multi-choice Nigeria Limited to pay N1,000,000,000.00 (One Billion Naira) or another suitable amount for disobeying an Interim Order.
FCCPC’ counsel, Nikiomari Abeke, mentioned no opposition to Multichoice Nigeria’s application but agreed to comply with the tribunal’s directives.
Justice Okosu’s ruling highlighted that the FCCPC Act grants the tribunal jurisdiction over commercial activities nationwide.
“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu said.
He mentioned reviewing the relevant provisions referenced by the parties and found no requirement for an aggrieved consumer to file a complaint with the President of Nigeria or the Price Control Board to enforce their rights.
Additionally, the judge noted that the claimant had sent letters to the FCCPC prior to initiating the case.
“I have come to the conclusion that this tribunal has the jurisdiction to preside over consumer rights as in the instant case and I resolve this issue against Multichoice,” the judge said.
The Tribunal observed that Multichoice had defied its temporary orders, particularly criticizing the company for raising DSTV and GOTV prices, which it deemed unacceptable.
Multichoice’s preliminary objection for disregarding the interim orders was dismissed by the Tribunal.
As a result, an administrative penalty was imposed on Multichoice by the Tribunal for its failure to adhere to the tribunal’s directive.
“The first defendant is hereby mandated to pay N150 million penalty.
“Multichoice is hereby ordered to give Nigerians one month free subscription.”
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