The Competition and Consumer Protection Tribunal on Friday imposed a fine of N150 million on Multichoice Nigeria, the parent company of DStv and GOtv, for violating its order.
The tribunal had previously restrained the pay-TV company from increasing its monthly subscription fees pending the resolution of a lawsuit brought against it.
In addition to the fine, the tribunal mandated that Multichoice offer Nigerian customers a one-month free subscription to its DStv and GOtv services.
The dispute originated when Multichoice announced an increase in subscription fees with only an 8-day notice, which an Abuja-based lawyer, Festus Onifade, deemed insufficient.
Following this, Onifade filed a lawsuit challenging the price hike and obtained an interim order from the tribunal on April 29, preventing the company from implementing the new fees until the case was resolved. Despite the order, Multichoice proceeded with the price increase, leading Onifade to file contempt charges against the company.
The contempt charges, filed on May 7, specifically targeted the Manager of the Abuja branch of Multichoice Nigeria Ltd, Mr. Mohammed Sani. Onifade sought a directive from the tribunal for Multichoice to pay N1 billion as a penalty for disobeying the court order, or any other amount deemed appropriate by the tribunal.
In a Notice of Consequence of Disobedience to Order of Court, Form 48, marked CCPT/OP/02/2024, the tribunal warned Sani against ignoring the order issued on April 29, which explicitly restrained Multichoice from increasing tariffs and costs of its services from May 1, 2024, until the case was decided.
Multichoice argued that previous rulings had settled issues regarding price regulation, but Onifade maintained that the inadequate notice period was the central issue, not the price hike itself.
This led the tribunal to affirm its jurisdiction over the matter and rule against Multichoice.
The tribunal’s decision underscores the importance of adhering to legal directives and providing adequate notice to consumers regarding changes in service fees. The court has scheduled a hearing for the substantive suit filed by Onifade for July 3.
This ruling aims to ensure that companies respect consumer rights and comply with regulatory frameworks designed to protect these rights.
The tribunal’s actions reflect a broader commitment to consumer protection and fair business practices in Nigeria. By imposing a significant fine and mandating free subscriptions, the tribunal sends a clear message to service providers about the consequences of disregarding legal orders and failing to adequately notify customers of changes that affect them.
This case sets a precedent for future disputes and reinforces the necessity for companies to operate within the bounds of the law, particularly in sectors directly impacting consumers’ daily lives.
Subscribe to National Updates for more News
