Multichoice Nigeria is currently appealing the ruling by the Competition and Consumer Protection Tribunal, which has imposed a N150 million fine on the company and mandated a one-month free subscription for all DStv and GOtv subscribers in Nigeria.
Following Multichoice’s initial objection to the tribunal’s jurisdiction, which was overruled, the decision, issued last Friday, is part of the ongoing legal proceedings focused on consumer protection and fair competition in the Nigerian market.
According to a notice of appeal obtained from sources close to the case, Multichoice is contesting the tribunal’s jurisdiction and the imposed sanctions.
The tribunal, led by Justice Thomas Okosu, ordered Multichoice to provide Nigerian subscribers with one-month free access to DStv and GOtv.
This directive also follows Multichoice’s non-compliance with interim orders that restrained the company from increasing subscription rates pending the outcome of a motion filed by Barrister Festus Onifade.
Onifade’s lawsuit against Multichoice Nigeria Ltd and the Federal Competition and Consumer Protection Commission (FCCPC) accused the Pay-TV giant of unjustly raising subscription fees without adequate notice to customers.
The tribunal’s interim order, issued earlier, prevented Multichoice from implementing a scheduled price increase on May 1, 2024, until a full hearing could take place.
Multichoice’s lawyer, Moyosore J. Onibanjo (SAN), argued that the tribunal should dismiss the case based on precedent, asserting that similar disputes had been resolved previously in Multichoice’s favour.
However, Onifade maintained that the core issue was the insufficient notice given to customers regarding the price hike, rather than the hike itself.
The tribunal ruled that it has jurisdiction over the matter under Section 39(2) of the FCCPC Act, which covers all commercial activities aimed at profit across the federation.
The panel determined that Multichoice’s eight-day notice for the price increase was inadequate and dismissed the company’s preliminary objections. Consequently, the tribunal imposed the N150 million fine and mandated a free subscription period for Nigerian users.
In response to the ruling, Multichoice’s legal team communicated their intent to appeal, pointing to a breach of their right to a fair hearing. They argued that the tribunal delivered a verdict on the merits of the case without allowing Multichoice to fully present its defence.
According to sources, Multichoice has officially filed an appeal, seeking to overturn the tribunal’s decision. Meanwhile, the company has announced new price adjustments for DStv and GOtv packages, which took effect on May 1, 2024, due to rising operational costs. This adjustment has led to a 25% to 26% hike in subscription fees, despite the ongoing legal dispute.
The FCCPC has disclosed that it will review Multichoice’s reasons for the price hike and may involve other regulatory bodies, such as the National Broadcasting Commission (NBC).
In the midst of these developments, Multichoice Group has attributed the decline in active DStv subscribers in Nigeria to the country’s challenging economic conditions.
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