Tribunal Fines Multichoice ₦150m, Orders One Month Free Subscription To Nigerians

The Competition and Consumer Protection Tribunal has fined Multichoice Nigeria, the parent company of DStv and GOtv, ₦150 million for disputing the court’s jurisdiction and ordered the company to provide Nigerians with a one-month free subscription to its DStv and GOtv packages.

The tribunal’s ruling was delivered on Friday, June 7, 2024, by a three-member panel led by Justice Thomas Okosu. The decision was made after Multichoice had increased its subscription rates on May 1, 2024, despite a previous court order restraining the company from doing so.

The lawsuit was initiated by lawyer Festus Onifade, who argued that Multichoice had given an inadequate 8-day notice to its customers about the price hike, which he claimed violated consumer rights. The tribunal had initially issued an interim order in April 2024, preventing Multichoice from implementing the price increase. However, the company went ahead with the price hike, arguing that the tribunal lacked the jurisdiction to regulate prices.

Justice Okosu, in his ruling, stated that the tribunal has jurisdiction over all commercial activities aimed at making a profit within Nigeria. He also noted that the claimant’s suit did not question the price hike itself but rather the illegality of the 8-day notice provided to customers.

The tribunal deemed Multichoice’s actions in defying the interim orders and increasing DStv and GOtv prices as “condemnable” and imposed the ₦150 million fine as an administrative penalty for non-compliance.

In addition to the fine, the tribunal ordered Multichoice to provide one month of free subscription to its DStv and GOtv customers in Nigeria. This is intended to serve as compensation for the inconvenience caused by the company’s actions.

The ruling has been hailed as a landmark decision by some, as it reinforces the tribunal’s authority in regulating commercial activities and protecting consumer rights in Nigeria.