The Competition and Consumer Protection Tribunal has directed Pay-TV operator Multichoice Nigeria to offer one month of free subscription to DStv and GOtv subscribers. This decision, along with a N150 million fine, was issued on Friday, June 7th, by a three-member panel led by Justice Thomas Okosu.
The tribunal’s ruling came after Multichoice Nigeria challenged its jurisdiction and disobeyed an earlier order restraining the company from increasing its subscription prices.
Barrister Festus Onifade had initially brought Multichoice and the Federal Competition and Consumer Protection Commission (FCCPC) before the tribunal over the pay-TV operator’s decision to hike its subscription rates. In response, the tribunal issued a restraining order against Multichoice, preventing the price increase pending the outcome of a motion filed by Onifade.
The FCCPC accused Multichoice of unjustly raising subscription fees without giving customers the required one-month notice and leveraged this to seek interim orders against the company. The tribunal, chaired by Saratu Shafii, ruled in favor of Onifade, restraining Multichoice from implementing the price increase scheduled for May 1, 2024, until the motion could be heard.
Multichoice’s legal representative, Moyosore J. Onibanjo (SAN), filed a preliminary objection, urging the tribunal to dismiss the suit on jurisdictional grounds, arguing that a similar price dispute had previously been decided in favor of his client. Onibanjo presented and adopted the prior judgement from case no. CCPT/OP/1/2022 as evidence.
Onifade countered that his current case was about the adequacy of notice given for the May 1, 2024, price increase, not about regulating prices. “It is our submission that the 8-day notice issued by Multichoice Nigeria is insufficient in law. A monthly subscriber should be given at least a month,” Onifade argued. He also called for Multichoice to be fined N1 billion for deliberately disobeying the tribunal’s interim order.
The FCCPC’s counsel, Nikiomari Abeke, stated that while he did not oppose Multichoice’s application, he would abide by the tribunal’s direction.
In his ruling, Justice Okosu cited Section 39(2) of the FCCPC Act, affirming that the tribunal has jurisdiction over all commercial activities across Nigeria. “The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu declared. He found no requirement for an aggrieved consumer to file a complaint with the President of Nigeria or the Price Control Board before seeking enforcement of their rights.
Justice Okosu concluded that the tribunal had the authority to preside over the case, dismissing Multichoice’s preliminary objection. He condemned Multichoice for disobeying the interim order and increasing prices despite the restraining order, describing the action as “condemnable and must not be condoned by the Tribunal.”
The tribunal then imposed an administrative penalty on Multichoice for non-compliance, ordering the company to pay a N150 million fine and provide one month of free subscription to its Nigerian customers. “The first defendant is hereby mandated to pay N150 million penalty. Multichoice is hereby ordered to give Nigerians one month free subscription,” the ruling stated.
