The Competition and Consumer Protection Tribunal (CCPT) in Abuja has slammed a hefty N150 million fine on MultiChoice Nigeria Limited for disregarding the tribunal’s authority by flouting its earlier order.
In a unanimous decision by the three-member panel, the tribunal also directed MultiChoice to provide Nigerians with a one-month free subscription on its DSTV and GOTV services as restitution.
The ruling, delivered by the Saratu Shafii-led panel, came after an ex-parte motion filed by a legal practitioner, Mr. Festus Onifade, on behalf of MultiChoice subscribers.
The tribunal subsequently set July 3 to hear the substantive case instituted against the company.
Background
MultiChoice Nigeria Limited announced plans to increase tariffs and the cost of its products and services, set to take effect on May 1, 2024.
However, this decision faced backlash from subscribers who alleged that the eight-day notice given before the planned hike was grossly inadequate.
According to precedents set by the Competition and Consumer Protection Tribunal (CCPT), at least one month’s notice must be provided to subscribers before effecting such an increase in prices for both DStv and GOtv services.
This requirement was based on previous rulings by the tribunal, aimed at protecting consumer rights.
Aggrieved by the perceived violation of their rights, a group of MultiChoice subscribers, led by legal practitioner Mr. Festus Onifade, approached the CCPT on April 29, 2024.
Onifade filed an ex-parte motion, alleging that the eight-day notice given by MultiChoice was insufficient and seeking an interim injunction to restrain the company from implementing the proposed price increase.
In response, the tribunal issued an interim order on April 29, restraining MultiChoice Nigeria Limited from going ahead with its plans to increase tariffs and the cost of its products and services on May 1, pending the hearing and determination of the substantive motion.
However, MultiChoice proceeded with the planned tariff hike on May 1, despite the tribunal’s restraining order. The company challenged the tribunal’s jurisdiction to issue such interim orders against it.
Court’s Decision
In a unanimous decision by the three-member panel, the Competition and Consumer Protection Tribunal (CCPT) in Abuja asserted its authority and rejected MultiChoice Nigeria Limited’s challenge to its jurisdiction.
The panel, led by Saratu Shafii and comprising Thomas Okosun and Dr. Umar Duhu, delivered a ruling against MultiChoice for flouting the tribunal’s earlier order.
Firstly, the tribunal imposed a substantial fine of N150 million on MultiChoice for disrespecting its jurisdiction by proceeding with the planned tariff hike on May 1, 2024, despite the interim order restraining such action.
The N150 million fine served as a penalty for the company’s defiance of the tribunal’s authority.
Secondly, the CCPT ordered MultiChoice to provide Nigerians with a one-month free subscription on its DStv and GOtv services.
This directive was intended as restitution for the violation of consumer rights and the disregard for the tribunal’s interim order issued on April 29, 2024.
In its ruling, the tribunal reiterated its previous stance that MultiChoice was required to give at least one month’s notice to subscribers before effecting any increase in tariffs or the cost of its products and services.
The eight-day notice provided by the company was deemed grossly inadequate and a violation of consumer rights.
Furthermore, the CCPT rejected MultiChoice’s challenge to its jurisdiction, asserting its authority to issue interim orders in matters related to consumer protection.
The tribunal stated, “The 1st defendant is hereby restrained from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the motion on notice.”
The tribunal set July 3, 2024, as the date to hear the substantive case instituted against MultiChoice by legal practitioner Mr. Festus Onifade on behalf of the company’s subscribers.
