Tariff hike: Tribunal fines MultiChoice N150m, orders free subscription

A Competition and Consumer Protection Tribunal (CCPT) has slammed N150 million fine on MultiChoice Nigeria Limited for disobeying its order on subscription rates hike for DStv and Gotv packages.

The tribunal sitting in Abuja, on Friday, June 7, 2024, also ordered MultiChoice to give a one-month free subscription to all Nigerian subscribers on the DStv and Gotv platforms for flouting its order.

The three-member tribunal chaired by Thomas Okosun in a ruling found MultiChoice culpable of contempt by flouting its earlier order restraining the PayTv operator from implementing hike in its subscription rates for DStv and GOtv.

The CCPT had, on April 29, restrained MultiChoice from increasing its tariffs and cost of products and services scheduled to begin on May 1.

The tribunal gave the interim order following an ex-parte motion moved by Ejiro Awaritoma, counsel for the applicant, Festus Onifade.

Onifade, a legal practitioner and subscriber, had approached the tribunal contending that the eight-day notice given by MultiChoice for a price hike was insufficient.

Respondents in the case were MultiChoice and the Federal Competition and Consumer Protection Commission (FCCPC).

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He urged the tribunal to restrain MultiChoice from implementing the tariff hike from May 1 as planned, pending the hearing determination of the petition.

The tribunal granted the ex-parte motion of the applicant and stopped the PayTv operator from going ahead with the price increase in the interim.

However, in defiance of the tribunal’s order, MultiChoice hiked its subscription rates for DStv and Gotv packages on the scheduled date (May 1).

Following the price hike, Onifade, on May 7, commenced contempt proceedings against the Manager of the Abuja office of MultiChoice, Mohammed Sani, over alleged disobedience to the order made by the tribunal.

The Notice of Consequence of Disobedience to Order of Court (Form 48) marked: CCPT/OP/02/2024 dated and filed on May 7 by Onifade, warned Sani against disregarding the tribunal order.

Ruling, the Thomas Okosun-led tribunal agreed with Onifade’s submission, prompting the panel to affirm its jurisdiction and rule against the company.

The tribunal, thereafter, fixed July 3 for hearing of the substantive suit of the claimant.

The Star