The case pertaining to the increase in subscription prices filed against MultiChoice Nigeria has been withdrawn by the Competition and Consumer Protection Tribunal (CCPT).
On Monday, a three-member tribunal bench headed by Thomas Okosu rendered the decision in response to Barrister Festus Onifade’s oral request to discontinue his lawsuit against the Pay TV operator.
The tribunal, headed by Thomas Okosu, fined MultiChoice 150 million naira and mandated a free membership for a month for disobeying temporary rulings that stopped DSTV and GOTV price increases. This was first published by THE MATRIX
The tribunal had restrained MultiChoice from increasing its subscription rates pending the hearing and determination of a motion on notice filed by Barrister Festus Onifade. Onifade had sued MultiChoice Nigeria Ltd and the Federal Competition and Consumer Protection Commission (FCCPC) over the price hike.
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A three-member tribunal chaired by Saratu Shafii had ruled in favor of Onifade by temporarily restraining MultiChoice from implementing the impending price increase scheduled to take effect on May 1, 2024, pending the hearing and determination of the motion on notice.
However, MultiChoice’s lawyer, Moyosore J. Onibanjo (SAN), had filed a preliminary objection urging the court to decline jurisdiction over the suit filed by Festus Onifade and to strike it out, arguing that a similar price dispute case had previously been decided in favor of his client.
Onifade argued that the issue before the court was whether MultiChoice Nigeria provided adequate notice regarding the May 1, 2024, TV subscription price increase, not about price regulation or increase.
Read also: Despite price increases, MultiChoice Nigeria’s revenue drops by 30%.
In its ruling, the three-member panel chaired by Justice Thomas Okosu dismissed MultiChoice’s preliminary objection for disobeying its interim orders and subsequently imposed a 150 million naira administrative penalty on MultiChoice, along with a one-month subscription order against the Pay TV provider.
MultiChoice has filed an appeal against the ruling, arguing that the tribunal erred in its decision.
The company also filed counter-affidavits dated July 12, 2024, providing reasons for its price hike and requesting that the tribunal dismiss the case.
Read also: Tariff Hike: Tribunal Fines Multichoice ₦150m, Ordered To Give Nigerians One Month Free Subscription
In its affidavits, deposed by Damilola Olatunji, MultiChoice explained that to mitigate the impact of the weakening exchange rate in Nigeria, it was constrained to increase its subscription prices, though it did so to the least affordable extent possible.
The company insisted that it duly notified its customers and regulatory authorities before the increment was effected.
It was stated that the defendant had already filed a notice of appeal dated June 7, 2024, and an application for a stay of execution of the tribunal’s orders made on June 7, 2024, along with a request for all further proceedings before the tribunal to be stayed pending the determination of the appeal.
Onifade urged the court to determine his case in the interest of justice.
