The Competition and Consumer Protection Tribunal (CCPT) has fined Multichoice Nigeria N150 million for challenging the court’s jurisdiction and has mandated the company to provide one-month free subscriptions for DStv and GOtv to Nigerians.
The tribunal’s decision follows a sequence of events starting on April 24, when Multichoice Nigeria announced a price increase for its DStv and GOtv packages, scheduled to take effect on May 1. On April 29, the tribunal issued an order stopping the price hike.
In response, Multichoice Nigeria, through its lawyer Moyosore Onibanjo, challenged the tribunal’s jurisdiction on April 30. On Friday, the tribunal, led by Judge Thomas Okosu, ruled against Multichoice, citing section 39(2) of the Federal Competition and Consumer Protection Commission (FCCPC) Act, which affirms the tribunal’s jurisdiction over all commercial activities in Nigeria aimed at making a profit.
“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu declared.
Reviewing the relevant legal provisions, Okosu found no requirement for aggrieved consumers to file complaints with the Nigerian president or the price control board to enforce their rights.
“I have come to the conclusion that this tribunal has the jurisdiction to preside over consumer rights as in the instant case and I resolve this issue against Multichoice,” the judge stated.
The tribunal also clarified that the claimant’s suit was not solely about the price hike but about the illegality of Multichoice’s eight-day notice to customers. The panel found Multichoice’s violation of interim orders and the hike in prices unacceptable.
The tribunal dismissed Multichoice’s preliminary objection and imposed an administrative penalty on the company for non-compliance with its orders.
“The first defendant is hereby mandated to pay N150 million penalty,” the verdict ruled.
Additionally, Okosu ordered Multichoice to provide one month of free subscription to all Nigerians using DStv and GOtv services. This decision aims to compensate consumers for the inconvenience caused by the company’s actions.
The tribunal’s ruling underscores the importance of adherence to consumer protection regulations and reaffirms the tribunal’s role in safeguarding consumer rights in Nigeria.