Tribunal Dismisses Suit Against MultiChoice Over Tariff Hike 

Competition and Consumer Protection (CCPC) Tribunal sitting in Abuja has dismissed a suit filed against MultiChoice, over the recent price hike on their products and subscription rates.

Gatekeepers News reports that the three-member panel tribunal, headed by Mr. Thomas Okosun, dismissed the suit filed by Barr. Festus Onifade, saying it lacked merit.

Onifade, on behalf of himself and other consumers, approached the Tribunal when MultiChoice had announced its plan to increase subscription tariffs on all its products from April 1.

Onifade on June 20,filed an amended suit, asking the tribunal to issue an order to the DSTV and GOTV operator to adopt a pay-as-you-view model charge for its products and services in Nigeria and also demanded that N10 million naira damages be awarded against the company.

In the suit, MultiChoice was the first respondent while the FCCPC was the second.

The tribunal had initially granted an ex parte motion that directed the parties to maintain the status quo ante bellum, but the company allegedly increased its prices on DStv and Gotv subscriptions.

MultiChoice’s lawyer, Mr. Jamiu Agoro, challenged the jurisdiction of the tribunal to entertain the matter and argued that the claimants lacked the locus standi to institute the action.

But the tribunal affirmed its jurisdiction on the matter.

The tribunal stated that the power to regulate prices of goods and services resides with the President and not with the Federal Competition and Consumer Protection Commission (FCCPC).

The tribunal also said that as Nigeria operates a free market economy, the claimant had not proven that MultiChoice abused its power of dominance in the market therefore the argument lacked merit.

The panel also refused to direct the firm to adopt a pay-as-you-view model of billing for its products and services and ordered the FCCPC to investigate if the firm adopts a pay-as-you-view package for its products and services in other countries, especially South Africa, and report back to the court within six months.

The tribunal also held that the claimants could not prove the Price hike trampled upon their rights, or caused psychological trauma and hardship.

However, The panel ordered MultiChoice to appear before it tomorrow, September 8 with their 2021 audited financial statements.