The Competition and Consumer Protection Tribunal on Friday ordered Multichoice Nigeria to provide a month of free subscription to its DStv and GOtv users.
Pan television service provider, Multichoice Nig. Ltd has been fined N150 million by the Competition and Consumer Protection Tribunal (CCPT) for disobeying its order on subscription rates hike for DStv and Gotv packages.
The tribunal, sitting in Abuja, also ordered the PayTv
operator to give a one-month free subscription to all its Nigerian subscribers
on the DStv and Gotv platforms, for flouting its order.
The three-member tribunal chaired by Thomas Okosun in a
ruling, found Multichoice culpable of contempt, by flouting its earlier order
restraining the PayTv operator from implementing hike in its subscription rates
for DStv and GOtv.
The CCPT had, on April 29, restrained MultiChoice from
increasing its tariffs and cost of products and services scheduled to begin on
May 1.
The tribunal gave the interim order following an ex-parte
motion moved by Ejiro Awaritoma, counsel for the applicant, Festus Onifade.
Onifade, a legal practitioner and subscriber had approached
the tribunal contending that the 8-day notice given by Multichoice for a price
hike was insufficient.
Respondents in the case were MultiChoice and Federal
Competition and Consumer Protection Commission (FCCPC).
He urged the tribunal to restrain Multichoice from
implementing the tariff hike from May 1 as planned, pending the hearing
determination of the petition.
The tribunal granted the ex-parte motion of the applicant
and stopped the PayTv operator from going ahead with the price increase in the
interim.
However, in defiance of the tribunal’s order, MultiChoice
hiked its subscription rates for DStv and Gotv packages on the scheduled date
(May 1).
Following the price hike, Onifade, on May 7, commenced
contempt proceedings against Mr Mohammed Sani, Manager of Abuja office of
MultiChoice Nigeria Ltd, over alleged disobedience to the order made by the
CCPT.
The Notice of Consequence of Disobedience to Order of Court
(Form 48) marked: CCPT/OP/02/2024 dated and filed on May 7 by Onifade, warned
Sani against disregard to the tribunal order.
MultiChoice, through its lawyer, Moyosore Onigbanjo, SAN,
filed a preliminary objection praying the tribunal to decline jurisdiction in
the suit.
Onigbanjo argued that such price dispute case had been
decided before, in favour of his client.
Onifade, in his response, urged the tribunal to
discountenance the company’s objection and direct it to pay the sum of N10
billion or any amount the panel might deem fit in the circumstance for
deliberately disobeying and failure to comply with the interim order.
The lawyer argued that the issue he brought did not border
on price regulation or increase.
He explained that what he placed before the court was
whether the company gave adequate notice in respect of the May 1 subscription
price increase.
“It is our submission that the 8-days notice issued by
Multichoice Nigeria Ltd is insufficient in law.
“A monthly subscriber should be given at least a month,” he
said, praying the tribunal to dismiss the preliminary objection for being a
waste of time of the court.
Delivering the ruling, the Thomas Okosun-led tribunal agreed
with Onifade’s submission, prompting the panel to affirm its jurisdiction and
rule against the company.
The tribunal subsequently fixed July 3 for hearing of the
substantive suit of the claimant.
NAN