Tribunal Awards A Month Free View To DSTV, GOTV Subscribers

…Fines Multichoice Nigeria N150m as penalty

The Competition and Consumer Protection Tribunal on Friday, June 7, 2024 fined Multichoice Nigeria, N150 million as administrative charges for challenging the jurisdiction of the Court sitting in Abuja that earlier restrained it from increasing the prices of its DStv and GOtv packages.

The judgement delivered by a three member panel led by Thomas Okosu, also ordered Multichoice to give its subscribers in Nigeria one-month free subscription on DSTV and GOTV.

The Tribunal in April this year, restrained MultiChoice from increasing its subscription rates pending the hearing and determination of a motion on notice filed by Mr Festus Onifade Esq, who sued Pay-Tv operator and the Federal Competition and Consumer Protection Commission (FCCPC). Onifade accused Multichoice Nigeria of unjustly increasing subscription fees without one-month notice to customers and leveraging it to seek interim orders against Multichoice.

The Tribunal in the suit marked CCPT/OP/2/2024, had in April, restrained Multichoice Nigeria from going ahead with the impending price increase scheduled to take effect from 1st May 2024 pending the hearing and determination of the Motion on Notice.

Rather than comply with the order of the Tribunal, the legal Counsel to Multichoice, Mr. Moyosore J. Onibanjo, SAN, filed a preliminary objection, praying the court to decline jurisdiction over the suit filed by Mr Onifade Esq and strike it out saying that such a price dispute case had been decided before in favour of Multichoice Nigeria.

Onibanjo also tendered and adopted the previous judgement of the Tribunal in suit no CCPT/OP/1/2022(Exhibit A), alongside his application, adding that when a court has determined an issue between the same parties on the same subject matter before, that matter cannot be re-litigated again by any Tribunal or court.

Onibanjo said that the power to regulate prices was vested in the President of Nigeria, adding that the Tribunal was not the forum where the claimant could seek to regulate the prices and services offered by Multichoice.

In his counter argument however, Onifade said that the issue he placed before the court was whether Multichoice Nigeria gave adequate notice in respect of the May 1, 2024 price TV subscription increase, and not price regulation or increase.

Onifade said; “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 the time of the court,” Onifade urged the Tribunal.

Onifade also asked the Tribunal to direct Multi-choice Nigeria Limited to pay the sum of N1,000,000,000.00 (One Billion Naira only) or any amount the Tribunal may deem fit as appropriate in the circumstance for “deliberately disobeying, contravening, and failure to comply with the Interim Order of this Honourable Tribunal granted on the 29th April 2024.”

In his own submission, the Counsel to FCCPC, Nikiomari Abeke, told the CCPT that while he was not opposing the application of Multichoice Nigeria, he would however abide by the direction of the Tribunal regarding all the processes before it.

Accordingly, the three-member panel chaired by Justice Thomas Okosu held that Section 39(2) of the FCCPC Act states that the Tribunal shall have jurisdiction throughout the federation and on all commercial activities aimed at making a profit.

Justice Okosu held that; “The jurisdiction of this tribunal extends to all business activities within Nigeria”.

The Tribunal said having looked at the relevant provisions cited by parties, it did not find where an aggrieved consumer who sought to enforce his rights was required to file a complaint to the President of Nigeria or the Price Control Board.

Justice Okosu noted that the claimant wrote letters to the FCCPC before filing his case, adding that he came to the conclusion that the tribunal has the jurisdiction to preside over consumer rights as in the instant case.

“I resolve this issue against Multichoice. The claimant’s instant suit was not questioning the Multichoice price hike as claimed by Onibanjo, but the illegality of his client’s 8-days notice to the customers,” the Tribunal held.

The Tribunal also noted that Multichoice had disobeyed its interim orders, stressing that its action of hiking DSTV and GOTV prices was condemnable and must not be condoned by the Tribunal and therefore dismissed Multichoice’s preliminary objection for disobeying its interim Orders.

As a result, the Tribunal fined Multichoice N150 million as administrative penalty for failing to comply with the Order of the Tribunal

The Tribunal held that; “The first defendant is hereby mandated to pay N150 million penalty.

“Multichoice is hereby ordered to give Nigerians one month free subscription,” it declared.

Multichoice Nigeria announced new price adjustments on DStv and GOtv packages on Wednesday, April 24, 2024.

The development had resulted in a 25% to 26% increase across Multichoice packages.

However, in spite of a pending case and a subsisting ruling, Multichoice Nigeria ignored the Court Order and proceeded with the upward adjustment of its prices for both DStv and GOtv subscribers.

On the part of the commission, it said it would review the reasons identified by Multichoice, adding that the agency could involve regulatory bodies such as the National Broadcasting Commission (NBC).