The Competition and Consumer Protection Tribunal has fined Multichoice Nigeria N150 million for challenging the court’s jurisdiction and ordered the company to provide Nigerians with a one-month free subscription on DStv and GOtv.
This decision follows a suit by Barrister Festus Onifade, who argued that the 8-day notice given by Multichoice for a price hike was insufficient.
“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.
Previously, the Tribunal had restrained Multichoice from increasing subscription fees without adequate notice.
Multichoice’s lawyer argued that price regulation disputes had been settled before and should not be re-litigated, while Onifade emphasised the lack of proper notice, leading the Tribunal to rule against Multichoice.
The Tribunal found that Multichoice had already disobeyed its interim orders by proceeding with the price hike and imposed an administrative penalty for non-compliance.
“The first defendant is hereby mandated to pay N150 million penalty.
“Multichoice is hereby ordered to give Nigerians a one-month free subscription,” the Tribunal ruled.
The Tribunal’s chair, Justice Thomas Okosu, affirmed that the tribunal has jurisdiction over all commercial activities in Nigeria and that the claimant’s suit focused on the insufficiency of the notice period rather than the price hike itself.
Multichoice’s new price adjustments on DStv and GOtv packages, announced on April 24, 2024, resulted in a 25% to 26% increase across its packages.
Despite the ruling, Multichoice proceeded with the price hike.
The commission has stated it will review the reasons behind Multichoice’s price adjustments and may involve regulatory bodies such as the National Broadcasting Commission (NBC).
