Multichoice break silence on N150m fine, free service to DStv, Gotv users, vow to appeal

Multichoice Nigeria has announced that it will appeal Friday’s verdict by the Competition and Consumer Protection Tribunal, CCPT, which imposed a N150 million fine for contesting the court’s jurisdiction.

Furthermore, the CCPT ordered the corporation to provide Nigerians with a one-month complimentary subscription to DStv and GOtv.

The tribunal had earlier prevented Multichoice from raising subscription prices without appropriate notice, following a suit filed by Festus Onifade, who claimed that Multichoice’s 8-day notice of a price increase was insufficient.

Reacting to the ruling, Multichoice Nigeria said it disagrees with the ruling and will file an appeal against it.

The statement reads: “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.”

The suit
Onifade, who sued Multi-Choice Nigeria Ltd and the Federal Competition and Consumer Protection Commission, FCCPC, accused the pay-TV of unjustly increasing subscription fees without one-month notice to customers and leveraging on it to seek interim orders against Pay TV.

A three-member tribunal chaired by Saratu Shafii had ruled in favour of Onifade by restraining Multichoice in the  interim, in the suit marked CCPT/OP/2/2024.

It restrained the pay TV from going ahead with the impending price increase scheduled to take effect from 1st May 2024, pending the hearing and determination of the Motion on Notice.

… objection
However, Multichoice’s lawyer, Moyosore Onibanjo, SAN, filed a preliminary objection urging the court to decline jurisdiction on the suit filed by Festus Onifade and strike it out because such a price dispute case had been decided before in favour of his client.

Onibanjo also tendered and adopted the previous judgement of the tribunal in suit no CCPT/OP/1/2022(Exhibit A), alongside his application.

He said when a court has determined an issue between the same parties on the same subject matter before, that matter cannot be re-litigated again by any tribunal or court.

On Friday, the three-man panel chaired by Justice Thomas Okosu held that Section 39(2) of the FCCPC Act states that the tribunal shall have jurisdiction throughout the federation and on all commercial activities aimed at making a profit.

“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu said.

He said he looked at relevant provisions cited by parties and did not find where an aggrieved consumer who seeks to enforce his rights is required to file a complaint to the President of Nigeria or the Price Control Board.

The judge also observed that the claimant wrote letters to the FCCPC before filing his case.

“I have come to the conclusion that this tribunal has the jurisdiction to preside over consumer rights as in the instant case and I resolve this issue against Multichoice,” the judge said.

Besides, the tribunal held that the claimant’s instant suit is not questioning the Multichoice price hike as claimed by Onibanjo but the illegality of his client’s 8-day notice to the customers.