A Competition and Consumer Protection Tribunal (CCPT) has fined Multichoice Nigeria N150 million for challenging the court’s authority.
In a ruling on Friday, June 7, the tribunal also ordered the company to give Nigerians one month of free DStv and GOtv subscriptions.
On April 24, Multichoice Nigeria had announced a price increase for its DStv and GOtv packages.
However, on April 29, the tribunal blocked this price hike, which was set to start on May 1.
In response, Multichoice Nigeria, represented by lawyer Moyosore Onibanjo, challenged the tribunal’s decision on April 30, questioning its authority to impose the price freeze.
On Friday, the tribunal, led by Thomas Okosu, ruled that the tribunal does have jurisdiction over all business activities in Nigeria, citing section 39(2) of the Federal Competition and Consumer Protection Commission (FCCPC) Act.
The states that the “tribunal shall have jurisdiction throughout the federation and on all commercial activities aimed at making a profit”.
“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu ruled.
Okosu stated that an aggrieved consumer does not need to file a complaint 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 said.
The tribunal found that the claimant’s suit was not about the price increase itself but about the short eight-day notice given to customers.
It ruled that Multichoice’s violation of interim orders and the price hike were unacceptable.
The tribunal dismissed Multichoice’s preliminary objection for not complying with its interim orders and imposed a N150 million penalty on the company.
Okosu also ordered Multichoice to provide Nigerians with one month of free DStv and GOtv subscriptions.
KanyiDaily recalls that Multichoice Nigeria had cited the “rise in the cost of business operations” in Nigeria as the reason for the increase in the prices for DStv and GOtv packages.
