The legal team representing Multichoice Nigeria, a prominent pay-TV operator, has stated that the Competition and Consumer Protection Tribunal breached their right to a fair hearing by imposing a fine of N150 million on them. This came after Multichoice filed a preliminary objection challenging the tribunal’s jurisdiction and seeking other reliefs.
Multichoice’s lawyer, Moyosore .J. Onibanjo (SAN), announced plans to appeal the verdict immediately.
The tribunal, led by Thomas Okosu, not only imposed the fine but also ordered Multichoice to provide Nigerians with a one-month free subscription on DSTV and GOTV for disregarding its interim orders restraining a price hike on their services.
The legal battle stemmed from a lawsuit by Onifade against Multi-Choice Nigeria Ltd, and the Federal Competition and Consumer Protection Commission alleging that the pay TV operator unjustly increased subscription fees without providing customers with the required one-month notice. In response, a three-member tribunal ruled in favor of Onifade by temporarily restraining Multichoice from implementing the impending price increase set to take effect from 1st May 2024 until the case is fully heard and determined.
Multichoice’s lawyer filed a preliminary objection urging the court to decline jurisdiction due to a previous favorable ruling in a similar price dispute case. On the other hand, Onifade Argued that the “issue at hand was whether Multichoice Nigeria provided adequate notice regarding the price increase, and not about price regulation or increase itself,” said Onifade. He further stated that Multichoice Nigeria 8-days notice was insufficient in law, contending that a monthly subscriber should be given at least a month’s notice.
In the ruling on Friday, the three-man panel led by Justice Thomas Okosu stated that the tribunal has jurisdiction across Nigeria and overall business activities aimed at making a profit, as outlined in Section 39(2) of the FCCPC Act. The judge emphasized that the tribunal has the authority to preside over consumer rights cases without the requirement for complainants to file with the President of Nigeria or the Price Control Board.
Additionally, the judge noted that the claimant had contacted the FCCPC before initiating the case. The tribunal confirmed that the claimant’s lawsuit wasn’t about Multichoice’s price increase, but rather the illegality of the 8-days notice given to customers. The tribunal condemned Multichoice’s disobedience of its interim orders and imposed a penalty of N150 million. Furthermore, the tribunal ordered Multichoice to provide one month of free subscription to Nigerians.
After the court’s ruling, Onibanjo stated that the verdict will be appealed. He believes that his client did not receive a fair hearing regarding the price hike. “The Tribunal’s Orders shall be appealed immediately. The matter was adjourned to 7th June 2024 for ruling on our application challenging jurisdiction. However, surprisingly, rather than just ruling on its jurisdiction, the Tribunal went ahead to pronounce us guilty of disobedience of its orders and issued severe sanctions against us, all without hearing us on the matter. This is in breach of our constitutionally guaranteed rights to a fair hearing,”.
Multichoice had earlier announced new price adjustments on DStv and GOtv packages on Wednesday, April 24, 2024. The email message to subscribers read: “On Wednesday, 1 May 2024, we will adjust our prices across all our packages on DStv and GOtv. We understand the impact this change may have on you – our valued customer, but the rise in the cost of business operations has led us to make this difficult decision. It remains our mission to provide the best entertainment and viewing experience to you and we are committed to continue to deliver high-quality content and unparalleled service.”
This development had resulted in a 25% to 26% increase across Multichoice packages. However, despite the ongoing ruling, the Pay TV provider proceeded with the upward adjustment of its prices for DStv and GOtv subscribers.
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