MultiChoice Nigeria Limited was fined N150 million by the Competition and Consumer Protection Tribunal (CCPT) on Friday for disobeying its order and abusing its jurisdiction. The CCPT is based in Abuja. The three-member bench of the tribunal unanimously decided to give MultiChoice a one-month free membership to its DSTV and GOTV services for Nigerians.
Following an ex-parte motion submitted by attorney Mr. Festus Onifade on behalf of MultiChoice customers, the tribunal presided over by Saratu Shafii issued the orders. After that, the tribunal scheduled a hearing for July 3rd to consider the substantive action brought against the company.
Recall that on April 29, the panel ordered MultiChoice Nigeria Limited to halt the implementation of its plans to raise the tariffs and prices of its goods and services on May 1.
Onifade had petitioned the tribunal, claiming that the respondent’s eight-day notice before raising service fees was woefully insufficient. He said that the tribunal had emphasized in earlier decisions that subscribers must be given at least one month’s notice before any increases in the rates of DSTV and GOTV services could take place.
Specifically, the Applicant, in the motion that was moved by his counsel, Ejiro Awaritoma, applied for, “an order of interim injunction of this honourable tribunal restraining the 1st defendant whether by themselves, her privies, assigns by whatsoever name called from going ahead with impending price increase schedule to take effect from 1st May, 2024, pending the hearing and determination of the motion on notice.”
As well as, “An order restraining the 1st defendant from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the Motion on Notice.”
Cited as defendants in the suit marked: CCPT/OP/2/2024, were MultiChoice Nigeria Ltd and Federal Competition and Consumer Protection Commission, FCCPC.
In its ruling, the tribunal granted the interim orders as prayed.
The tribunal restrained Multi-Choice from proceeding with its scheduled price increase, pending the hearing and determination of the motion on notice filed before it.
It held: “The 1st defendant is hereby restrained from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the motion on notice.”
However, despite the restraining order, MultiChoice proceeded with its planned tariff hike, even as it challenged the jurisdiction of the tribunal to issue the interim orders against it.
Other members of the panel that awarded the fine against MultiChoice on Friday for flouting the interim order, were, Thomas Okosun and Dr. Umar Duhu.