The Competition and Consumer Protection Tribunal has ordered MultiChoice Nigeria Ltd. to provide DSTV and GoTV subscribers with a complimentary one-month subscription as compensation for its arbitrary and abrupt increase in subscription fees.
In addition, the court fined MultiChoice Nigeria N150 million for contesting the authority of the Abuja court, which had earlier granted a stay on the hikes in DSTV and GoTV package prices.
A three-person panel headed by Thomas Okosu made the decision on Friday, June 7. The court cited the FCCPC Act’s Section 39(2), which gives the tribunal authority over all profit-oriented commercial activities across the federation.
“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu said.
The judge noted that he examined the relevant legal provisions and found no requirement for an aggrieved consumer seeking to enforce their rights to file a complaint with the President of Nigeria or the Price Control Board. Additionally, the claimant had written to the FCCPC before filing the case.
“I conclude that this tribunal has the jurisdiction to preside over consumer rights in this case and resolve this issue against MultiChoice,” the judge declared.
The tribunal also clarified that the claimant’s suit challenged not only the price hike but also the illegality of MultiChoice’s eight-day notice to customers.
Multichoice Defied Previous Order
The tribunal noted that MultiChoice had already defied its interim orders. It condemned the company’s raising DSTV and GOTV prices as unacceptable and not to be tolerated.
MultiChoice’s preliminary objection was dismissed because it disobeyed the tribunal’s interim orders. The tribunal then imposed an administrative penalty on MultiChoice for non-compliance.
“The first defendant is hereby mandated to pay a N150 million penalty,” Okosu announced. “MultiChoice has also been ordered to provide Nigerians with a one-month free subscription.“
The tribunal had earlier restrained MultiChoice from increasing its subscription rates pending the hearing and determination of a motion on notice filed by Barr. Festus Onifade.
Onifade had sued MultiChoice Nigeria Ltd and the Federal Competition and Consumer Protection Commission (FCCPC), accusing the company of unjustly increasing subscription fees without giving customers a one-month notice. Based on that, Onifade obtained interim orders against the organization.
Multichoice has not reacted to the judgment nor indicated how it intends to comply with the tribunal’s order.
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