Abuja, Nigeria — The Competition and Consumer Protection Tribunal (CCPT) fined Multichoice Nigeria, the owners of DStv and GOtv services, ₦150 million on Friday. This penalty was imposed for Multichoice’s disobedience of CCPT’s orders, which had restrained the pay-TV company from increasing its monthly subscription fees pending the determination of an ongoing suit.
In addition to the fine, the tribunal mandated Multichoice to provide a one-month free subscription to all its Nigerian customers for both DStv and GOtv packages.
The tribunal’s initial order was a response to a lawsuit filed by Abuja-based lawyer Festus Onifade. Onifade argued that Multichoice had given an inadequate 8-day notice before implementing a price increase, which he deemed insufficient for consumers to adjust. The tribunal supported this view and ordered Multichoice to halt any price increases until a final decision was reached in the suit.
Multichoice contended that previous rulings had already settled issues regarding price regulation, implying that their actions were within legal bounds. Despite this, the tribunal reaffirmed its jurisdiction and maintained that Multichoice’s notice period was indeed inadequate.
The tribunal has scheduled the hearing of the substantive suit for July 3. This hearing will further address the specifics of the case brought by Onifade and potentially set a precedent for future consumer protection and price regulation issues in Nigeria’s pay-TV sector.
The tribunal’s decision aims to protect consumers from abrupt price changes and ensure they receive adequate notice in the future. The one-month free subscription is a significant relief for many customers, offering them temporary respite from subscription costs.
The CCPT’s ruling against Multichoice Nigeria highlights the importance of adhering to consumer protection laws and ensuring fair treatment for subscribers. The outcome of the July 3 hearing will be closely watched by stakeholders across the industry.
Details to follow as the story develops…
