Tribunal slams N150m fine against Multichoice
• Orders it to give 1-month free DSTV, GOTV subscriptions to customers
• We’ll appeal ruling, says Multichoice
From Godwin Tsa, Abuja
The Competition and Consumer Protection Tribunal (CCPT) on Friday, awarded a fine of N150 million against MultiChoice Nigeria Limited for disrespecting its jurisdiction by flouting its order.
The Saratu Shafii-led tribunal sitting in Abuja made the orders following an ex-parte motion filed on behalf of a legal practitioner, Mr Festus Onifade, on behalf of MultiChoice subscribers. The tribunal subsequently fixed July 3 to hear the substantive action that was instituted against the company.
Listed as defendants in the suit marked: CCPT/OP/2/2024, were MultiChoice Nigeria Ltd and Federal Competition and Consumer Protection Commission (FCCPC).
The tribunal had on April 29, restrained MultiChoice Nigeria Limited from going ahead with its plans to increase tariffs and cost of its products and services on May 1.
In the pending action, Onifade had approached the tribunal, alleging that an eighth-day notice the respondent gave before hiking prices of its services, was grossly inadequate.
He strongly argued that the tribunal had in its previous rulings, stressed that at least one month notice must be given to subscribers before such increase in prices of both DSTV and GOTV services could be effected. In his motion that was filed and moved by his counsel, Ejiro Awaritoma, the applicant applied for “an order of interim injunction of this honourable tribunal restraining the 1st defendant whether by themselves, her privies, assigns by whatsoever name called from going ahead with impending price increase schedule to take effect from 1st May, 2024, pending the hearing and determination of the motion on notice.”
He further asked for “An order restraining the 1st defendant 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.”
Ruling on the motion, the tribunal granted the interim orders as prayed.
The tribunal restrained Multi-Choice from proceeding with its scheduled price increase, pending the hearing and determination of the motion on notice filed before it.
“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 panel ruled.
Other members of the panel that awarded the fine against MultiChoice on Friday for flouting the interim order, were, Thomas Okosun and Dr. Umar Duhu.
Despite the restraining order, MultiChoice proceeded with its planned tariff hike, even as it challenged the jurisdiction of the tribunal to issue the interim orders against it.
Meanwhile MultiChoice Nigeria has vowed to appeal the ruling.
In a terse statement last night, Multichoice noted: “MultiChoice Nigeria is aware of the recent ruling by the Competition and Consumer Protection Tribunal (CCPT) regarding its jurisdiction to entertain a price regulation matter. We disagree with the ruling, and will therefore file an appeal against said ruling. As the matter is currently sub judice, we are restrained from making further comments.”
