Tribunal fines MultiChoice N150M, orders one-month free subscription for defying court order on price hike. Ruling addresses notice period, not price regulation, asserting jurisdiction over consumer rights.
In a significant ruling, the Competition and Consumer Protection Tribunal (CCPT) has imposed a hefty fine of N150 million on MultiChoice Nigeria, a leading pay-TV operator, and ordered the company to provide Nigerians with a one-month free subscription across its DStv and GOtv platforms.
The tribunal's decision comes after a protracted legal battle initiated by Barrister Festus Onifade, who argued that MultiChoice violated consumer rights by providing insufficient notice of an impending price hike scheduled for May 1, 2024. Onifade contended that the eight-day notice given by MultiChoice was inadequate, asserting that subscribers should receive at least a month's notice for such price adjustments.
In a previous ruling, the CCPT had restrained MultiChoice from implementing the price increase pending the resolution of the case. However, MultiChoice challenged the tribunal's jurisdiction, arguing that price regulation disputes had been previously settled in its favor and should not be re-litigated.
Moyosore J. Onibanjo, a Senior Advocate of Nigeria (SAN) representing MultiChoice, cited a previous judgment by the tribunal in support of his client's position. He further contended that the power to regulate prices rests with the President of Nigeria, asserting that the CCPT is not the appropriate forum for such matters.
However, the three-member panel, led by Justice Thomas Okosu, dismissed MultiChoice's objection, stating that the tribunal has jurisdiction over all commercial activities aimed at making a profit within Nigeria. Okosu emphasized that the claimant's suit did not question the price hike itself but rather the illegality of the eight-day notice provided to customers.
"The jurisdiction of this tribunal extends to all business activities within Nigeria," Okosu asserted, adding that the tribunal found no provision requiring aggrieved consumers to file complaints with the President or the Price Control Board.
The tribunal deemed MultiChoice's actions in defying the interim orders and increasing DStv and GOtv prices as "condemnable" and imposed the N150 million fine as an administrative penalty for non-compliance.
