The Competition and Consumer Protection Tribunal has ordered MultiChoice to offer Nigerians one-month free DStv and GOtv subscriptions.
The tribunal also fined the Pay TV operator, N150 million for challenging the jurisdiction of a court sitting in Abuja that restrained it from raising prices for its subscription services.
The ruling was delivered by three of the panel led by Thomas Okosu, on Friday.
In April, a court barred MultiChoice from implementing an upward price review for its services pending the hearing and determination of a motion on notice filed by Barrister Festus Onifade.
Onifade had sued DSTV, accusing the Pay-TV of unjustly increasing subscription fees without one month’s notice to customers and leveraging on it to seek interim orders.
In response to Multichoice Nigeria’s challenge to the jurisdiction of the court, Moyosore .J. Onibanjo (SAN), the company’s lawyer, filed a preliminary objection, arguing that the court should decline jurisdiction due to a previous favorable ruling for Multichoice on a similar price dispute case. Onibanjo emphasized that the power to regulate prices rests with the President of Nigeria and not the Tribunal.
However, Festus Onifade, representing the plaintiff, countered that the issue at hand was whether Multichoice Nigeria provided adequate notice regarding the May 1, 2024, price increase, not price regulation. He argued that the 8-day notice given by Multichoice was insufficient in law, advocating for dismissal of Multichoice’s application as a waste of the court’s time.
Onifade further requested that Multichoice Nigeria be directed to pay a hefty penalty for failing to comply with the tribunal’s interim order issued on April 29, 2024.
Counsel for the FCCPC, Nikiomari Abeke, did not oppose Multichoice Nigeria’s application but expressed willingness to abide by the tribunal’s decision.
In delivering the judgment, Justice Okosu cited Section 39(2) of the FCCPC Act, affirming the tribunal’s jurisdiction over all commercial activities aimed at profit-making within Nigeria. He noted that aggrieved consumers seeking to enforce their rights are not required to file complaints with the President of Nigeria or the Price Control Board.
The judge also observed that the claimant had previously corresponded with the FCCPC before initiating legal action, reinforcing the tribunal’s jurisdiction over consumer rights issues.
Consequently, the tribunal dismissed Multichoice’s preliminary objection and imposed a N150 million penalty on the company for disobeying its interim orders. Additionally, Multichoice Nigeria was ordered to provide one month of free subscriptions to its subscribers. The tribunal condemned Multichoice’s action of hiking DSTV and GOTV prices and emphasized the importance of upholding consumer rights.
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