The tribunal mandates Multichoice to pay a N150 million fine and provide users with a free one-month subscription.

The tribunal mandates Multichoice to pay a N150 million fine and provide users with a free one-month subscription.

On April 29, the panel imposed a stay on MultiChoice, prohibiting it from raising the prices of goods and services that were supposed to go into effect on May 1.

The Competition and Consumer Protection Tribunal (CCPT) fined Multichoice Nig. Ltd. N150 million on Friday for defying its directive to raise subscription costs for DStv and Gotv bundles.

In addition, the tribunal, which was seated in Abuja, mandated that the pay television provider offer all of its Nigerian customers on the DStv and Gotv platforms a complimentary one-month membership in exchange for their disobedience.

In a decision, the three-member panel led by Thomas Okosun declared Multichoice in contempt for disobeying a previous injunction prohibiting the pay television provider from raising DStv and GOtv membership costs.

According to the News Agency of Nigeria (NAN), MultiChoice was prevented by the CCPT on April 29 from raising the prices of its goods and services that were set to go into effect on May 1.

Following an ex-parte motion made by Festus Onifade’s attorney, Ejiro Awaritoma, the tribunal granted the interim injunction.

Attorney and subscriber Mr. Onifade had come before the tribunal arguing that Multichoice had not provided enough notice—eight days—before raising prices.

MultiChoice and the Federal Competition and Consumer Protection Commission (FCCPC) were the respondents in this lawsuit.

As the petition is being heard and decided, he asked the tribunal to prevent Multichoice from enacting the pricing hike on May 1st as scheduled.

The applicant’s ex-parte motion was approved by the tribunal, preventing Multichoice from proceeding with the price hike in the interim.

On May 1, MultiChoice increased the cost of its DStv and Gotv subscription packages, against the tribunal’s order.

Following the price increase, Mr. Onifade filed a contempt lawsuit on May 7 against Mohammed Sani, Manager of MultiChoice Nigeria Ltd.’s Abuja office, for allegedly disobeying the CCPT’s decision.

Mr. Sani was cautioned against disobeying the tribunal order in the Notice of Consequence of Disobedience to Order of Court (Form 48), marked: CCPT/OP/02/2024, filed by Mr. Onifade on May 7.

Through its attorney, Senior Advocate of Nigeria Moyosore Onigbanjo, MultiChoice filed a preliminary objection pleading with the tribunal to deny jurisdiction over the lawsuit.

Mr. Onigbanjo contended that a case involving a price disagreement had previously been resolved in his client’s favor.

In response, Mr. Onifade requested the tribunal to disregard the company’s objection and order it to pay N10 billion, or any other amount the panel might find appropriate under the circumstances, for willfully disregarding and failing to adhere to the interim order.

The attorney maintained that his point did not touch on pricing control or hikes.

He clarified that the question he brought before the court was whether the business provided sufficient notice of the planned rise in membership prices effective May 1.
“We contend that Multichoice Nigeria Ltd.’s eight-day notice is legally insufficient.

“A monthly subscriber ought to be granted a minimum of one month,” he prayed, imploring the tribunal to reject the preliminary objection on the grounds that it was an unnecessary use of the court’s time.

The tribunal presided over by Thomas Okosun found merit in Mr. Onifade’s submission, which led the panel to uphold its jurisdiction and decide against the company.

The panel then scheduled a hearing for July 3 to hear the claimant’s substantive lawsuit.

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