The Competition and Consumer Protection Tribunal has imposed a N150 million fine on Multichoice Nigeria, the parent company of DSTV and GOtv, for violating its directive to halt subscription fee hikes pending the resolution of an ongoing legal case.
In addition to the financial penalty, the tribunal has mandated that Multichoice provide its Nigerian subscribers with one month of free access to DSTV and GOtv services. This decision stems from a lawsuit initiated by Abuja-based lawyer Festus Onifade, who argued that the eight-day notice Multichoice provided for the price increase was insufficient.
Background and Legal Proceedings
The tribunal had previously issued an order preventing Multichoice from raising its subscription fees without adequate notice. Despite this, Multichoice proceeded with the planned price hikes, prompting Onifade to file contempt charges against the company’s Abuja branch manager, Mr. Mohammed Sani, on May 7.
Onifade requested that the tribunal impose a significant financial penalty on Multichoice for its deliberate non-compliance with the court order. He sought a sum of N1 billion or an amount deemed appropriate by the tribunal, arguing that Multichoice’s actions constituted a clear contravention of the interim order issued on April 29.
Tribunal’s Decision
The tribunal’s notice, marked CCPT/OP/02/2024 and dated May 7, warned Sani of the consequences of disregarding its order. The notice explicitly stated that Multichoice must refrain from implementing the proposed tariff increases until the tribunal had reached a decision on the motion filed by Onifade.
In response, Multichoice contended that previous court rulings had already addressed issues related to price regulation. However, the tribunal upheld its jurisdiction and determined that the insufficient notice period was a critical issue that warranted enforcement of its initial directive.
Future Proceedings
The tribunal has scheduled a hearing for the substantive case brought by Onifade for July 3. This session will further examine the legal arguments surrounding the adequacy of notice and Multichoice’s compliance with regulatory directives.
This ruling highlights the ongoing tension between regulatory authorities and service providers over consumer rights and corporate compliance in Nigeria’s dynamic pay-TV market. The outcome of the July 3 hearing will be closely watched by both industry stakeholders and subscribers alike.
