Victor Ezeja
MultiChoice Nigeria has said it will appeal the ruling of the Competition and Consumer Protection Tribunal, which ordered the pay TV company to pay a fine of N150 million for challenging its jurisdiction.
The tribunal which gave the ruling on Friday, also ordered Multichoice to provide one-month free subscriptions on DStv and GOtv to Nigerian subscribers.
Join our WhatsApp ChannelThe fine slammed on Multichoice Nigeria, was for disobeying a court order that restrained the pay-TV company from increasing its monthly subscription, pending the determination of a suit brought before it.
Prime Business Africa recalls that Multichoice had on April 24, announced an increase in the cost of subscriptions for its DStv and GOtv packages to take effect from 1st May, 2024. An Abuja-based lawyer, Festus Onifade, filed a suit claiming that the eight-day notice provided for the price increase was insufficient. Based on the suit, the tribunal ruled that Multichoice should not increase its subscription fees without giving due notice.
READ ALSO: MultiChoice Nigeria Raises DStv, GOtv Subscription Prices 6 Months After Last Increase
However, the pay-TV company went ahead and implemented the subscription tariff hike, in disobedience of the court order. This prompted Onifade to file contempt charges against Multichoice.
MultiChoice’s lawyer, Moyosore Onibanjo, filed an application on 3oth April to challenge the tribunal’s ruling prohibiting the company from increasing the cost of its packages.
In its ruling of Friday, the three-man panel tribunal, led by Thomas Okosu, imposed an administrative penalty on Multichoice for failing to comply with the order of the tribunal not to implement the price adjustment.
The panel cited section 39 (2) of the Federal Competition and Consumer Protection Commission (FCCPC) Act, which states that the “tribunal shall have jurisdiction throughout the federation and on all commercial activities aimed at making a profit.”
However, in a statement after the ruling, MultiChoice said it disagreed with the tribunal, adding that it would appeal the verdict.
The statement said: “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.”
The company further stated that due to the ongoing legal proceedings, it is prohibited from making any additional comments.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
