A three-member panel of the Competition and Consumer Protection Tribunal has ruled that Multichoice Nigeria must offer one month of free subscription to subscribers on its DStv and GOtv platforms. Additionally, the tribunal imposed a fine of N150 million on Multichoice for contesting the court’s jurisdiction and disobeying its orders.
The ruling was handed down on Friday, June 7th, by a panel chaired by Justice Thomas Okosu. This decision follows a case brought against Multichoice and the Federal Competition and Consumer Protection Commission (FCCPC) by Barrister Festus Onifade, who challenged Multichoice’s decision to increase subscription prices without adequate notice.
Multichoice had announced new price adjustments on April 24, 2024, with changes to take effect on May 1, 2024. The company cited rising business operation costs as the reason for the price hike. However, the tribunal had previously restrained Multichoice from implementing the price increase pending the hearing and determination of a motion on notice filed by Onifade.
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Despite this, Multichoice went ahead with the price increase, leading to further legal action. Multichoice’s lawyer, Moyosore J. Onibanjo (SAN), filed a preliminary objection, urging the court to dismiss the case on the grounds that a similar issue had previously been decided in Multichoice’s favor. Onifade argued that the core issue was the adequacy of the notice period given to subscribers, not the price increase itself.
In its judgment, the tribunal ruled that it had jurisdiction over the case and that Multichoice had violated its interim orders. Justice Okosu emphasized that the tribunal’s jurisdiction covers all commercial activities within Nigeria and that consumers have the right to seek enforcement of their rights without needing to file complaints to the President or the Price Control Board.
The tribunal condemned Multichoice’s actions and imposed an administrative penalty of N150 million for failing to comply with its order. Additionally, Multichoice was ordered to provide one month of free subscription to its Nigerian subscribers.
“The first defendant is hereby mandated to pay a N150 million penalty,” Justice Okosu stated. “Multichoice is hereby ordered to give Nigerians one-month free subscription.”
This ruling underscore the tribunal’s commitment to protecting consumer rights and ensuring compliance with its orders.
