Multichoice Nigeria, a prominent Pay-TV operator, has filed an appeal against the ruling of the Competition and Consumer Protection Tribunal. The appeal comes after the Tribunal imposed a N150 million fine and mandated a free monthly subscription for DSTV and GOTV subscribers.
The Tribunal had initially restrained Multichoice from increasing its subscription rates pending a motion on notice filed by Barrister Festus Onifade. Onifade accused Multichoice of unjustly increasing subscription fees without adequate notice to customers and sought interim orders against the price hikes.
Multichoice's lawyer, Moyosore J. Onibanjo (SAN), had filed a preliminary objection, arguing that the court should decline jurisdiction as a similar case had previously been resolved in favor of Multichoice. However, Onifade countered that the issue was not about regulating or increasing prices but about whether Multichoice provided adequate notice for the May 2024 price increase.
The Tribunal, chaired by Justice Thomas Okosu, upheld that it had jurisdiction under Section 39(2) of the FCCPC Act, which covers all profit-driven commercial activities across the federation. The Tribunal dismissed Multichoice's preliminary objection, citing the illegality of the company's 8-day notice to customers .
Consequently, the Tribunal imposed a N150 million penalty and mandated a one-month free subscription. Multichoice's legal team has vowed to appeal, stating that the Tribunal's ruling violated their right to a fair hearing. According to Multichoice, the Tribunal was expected to rule on jurisdiction but instead issued severe sanctions without hearing their side.
The development comes amid Multichoice's announcement of new price adjustments for DSTV and GOTV packages effective May 1, 2024. The price hike resulted in a 25% to 26% increase across packages. Despite the Tribunal's ruling, Multichoice proceeded with the price increases.
The Federal Competition and Consumer Protection Commission (FCCPC) stated it would review Multichoice's reasons for the adjustments and might involve regulatory bodies like the National Broadcasting Commission (NBC). Multichoice Group attributed an 18% decline in active DSTV subscribers in Nigeria to the country's harsh economic conditions.
In conclusion, Multichoice Nigeria has filed an appeal against the Competition and Consumer Protection Tribunal's ruling, which imposed a fine and mandated a free subscription for DSTV and GOTV subscribers. The appeal comes after the Tribunal ruled in favor of Barrister Festus Onifade, who accused Multichoice of unjustly increasing subscription fees without adequate notice. The development highlights the ongoing dispute between Multichoice and the Tribunal, with the company citing a breach of their right to a fair hearing.
