MultiChoice to appeal N150M fine, free subscription order by consumer tribunal over price hike notice. Pay-TV giant disagrees with a ruling on jurisdiction, citing previous judgments.
MultiChoice Nigeria, the leading pay-TV operator in the country, has announced its intention to appeal the recent ruling by the Competition and Consumer Protection Tribunal (CCPT), which imposed a hefty fine of N150 million on the company and ordered it to provide one month of free subscription to Nigerian customers.
In a statement addressing the tribunal's order, MultiChoice expressed its disagreement with the CCPT's position, stating, "We disagree with the ruling, and will therefore file an appeal against said ruling."
The dispute arose after MultiChoice announced an increase in subscription fees for its DStv and GOtv packages on April 24, 2024, with the price hike scheduled to take effect on May 1. However, on April 29, the CCPT restrained MultiChoice from implementing the price adjustment pending the resolution of a case filed by Barrister Festus Onifade, who argued that the eight-day notice given to customers was insufficient.
Despite the tribunal's interim order, MultiChoice proceeded with the price increase, prompting the CCPT to impose the N150 million fine for non-compliance and order the company to provide a one-month free subscription to Nigerian customers.
The tribunal's decision was based on Section 39(2) of the Federal Competition and Consumer Protection Commission (FCCPC) Act, which grants the tribunal jurisdiction over "all commercial activities aimed at making a profit" within Nigeria.
MultiChoice, represented by Moyosore Onibanjo, a Senior Advocate of Nigeria (SAN), had challenged the tribunal's jurisdiction, arguing that price regulation disputes had been previously settled in its favor and should not be re-litigated. However, the CCPT dismissed MultiChoice's objection, asserting its authority over consumer rights violations.
While MultiChoice plans to appeal the ruling, the company refrained from further comments, citing the ongoing legal proceedings as the reason for its restraint.
The case has garnered significant attention, with legal experts and consumer advocates weighing in on the implications of this dispute for consumer rights, regulatory oversight, and the business practices of major service providers in Nigeria's telecommunications and media sectors.
