by Ola Williams
A competition and consumer protection tribunal (CCPT) has fined Multichoice Nigeria N150 million for challenging the court’s jurisdiction. In a ruling on Friday, the tribunal also ordered the company to provide one-month free subscriptions on DStv and GOtv for Nigerians.
The issue began on April 24 when Multichoice Nigeria announced an increase in subscription costs for its DStv and GOtv packages.
However, on April 29, the tribunal halted the scheduled May 1 price hike. In response, Multichoice, represented by lawyer Moyosore Onibanjo, filed an application on April 30 challenging the tribunal’s authority to issue the price restraining order.
The three-man panel, led by Thomas Okosu, cited section 39(2) of the Federal Competition and Consumer Protection Commission (FCCPC) Act, which grants the tribunal jurisdiction over all commercial activities in Nigeria. “The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu ruled.
Okosu reviewed the relevant legal provisions and concluded that an aggrieved consumer does not need to file a complaint to the Nigerian president or the price control board to enforce their rights. “This tribunal has the jurisdiction to preside over consumer rights as in the instant case and I resolve this issue against Multichoice,” he stated.
The tribunal clarified that the claimant’s suit was not about questioning the price hike but rather the illegality of Multichoice’s eight-day notice to customers. The tribunal condemned Multichoice’s violation of interim orders and the hike in DStv and GOtv prices, deeming it unacceptable and not to be tolerated. Consequently, the tribunal dismissed Multichoice’s preliminary objection for disobeying its interim orders and imposed an administrative penalty.
“The first defendant is hereby mandated to pay N150 million penalty,” the verdict ruled.
Additionally, Okosu ordered Multichoice to provide Nigerians with one month of free subscription.
