Multichoice Nigeria has lodged an appeal against the ruling of the Competition and Consumer Protection Tribunal, which, among other reliefs, imposed a N150 million fine and ordered a “free monthly subscription” for subscribers following its objection to jurisdiction.
According to sources familiar with the matter, Multichoice has filed a notice of appeal challenging the recent tribunal ruling.
Background of the Tribunal’s Decision
The tribunal, chaired by Saratu Shafii, had granted interim orders restraining Multichoice from implementing a planned subscription fee increase scheduled for May 1, 2024. This decision was in response to a lawsuit by Barrister Festus Onifade, who accused Multichoice of unjustly increasing fees without giving customers the required one-month notice.
Multichoice’s legal representative, Moyosore .J. Onibanjo (SAN), had filed a preliminary objection arguing that the tribunal lacked jurisdiction over the case, as similar disputes had been previously resolved in favour of Multichoice.
Onifade countered that his lawsuit focused on whether Multichoice had given adequate notice for the price increase rather than challenging it.
In its ruling, the tribunal upheld its jurisdiction under Section 39(2) of the FCCPC Act, which grants it authority over commercial activities aimed at profit-making. It dismissed Multichoice’s preliminary objection and imposed a N150 million administrative penalty, along with a directive for a one-month free subscription for Pay-TV customers.
Multichoice’s Response and Appeal
Following the tribunal’s ruling, Multichoice’s legal team expressed dissatisfaction, emphasizing procedural irregularities and constitutional rights violations. They vowed to appeal the decision.
Recent Developments
Despite the tribunal’s orders, Multichoice proceeded with its planned price adjustments across DStv and GOtv packages on May 1, 2024, citing rising operational costs amidst Nigeria’s economic challenges.
The Federal Competition and Consumer Protection Commission (FCCPC) stated it would review Multichoice’s reasons for the price hike and could involve regulatory bodies like the National Broadcasting Commission (NBC).
Amid these developments, Multichoice Group reported an 18% decline in active DStv subscribers in Nigeria, attributing it to the country’s economic conditions.
There has been no confirmation regarding whether Multichoice has reversed its subscription rates, as reported by some media outlets.
The appeal process is expected to unfold further as Multichoice seeks to challenge the tribunal’s decision and defend its position on the subscription fee increase issue.
