Multichoice Gets N25m Fine Over DStv/Gotv Tariff Hike
The Competition and Consumer Protection, CCPC, Tribunal sitting in Abuja, on Thursday, awarded a N25million fine against MultiChoice Nigeria Limited for spurning an order that restrained it from hiking DStv and Gotv subscription fees.
The three-member panel tribunal headed by Thomas Okosun held that the company acted contemptuously, when it proceeded to hike the prices of its product and services, despite the interlocutory order that barred it from doing so.
It will be recalled that though the tribunal had in a judgement it delivered Tuesday, dismissed a suit that challenged the increase on DSTv and Gotv subscription fees, it however ordered the cable service provider to produce its audited financial statement to enable it to determine the appropriate penalty for the contempt.
In determining the sanction on Thursday, the tribunal held that MultiChoice breached the order it made on March 30, and was therefore liable to pay the fine.
Chairman of the tribunal, Okosun, who cited Section 51 of the FCCPC Act, 2018, held thus: “We hereby order the 1st defendant, MultiChoice Nigeria Ltd, to pay the sum of N25million only as an administrative penalty for contempt of this honourable tribunal.”
A legal practitioner, Festus Onifade on behalf of himself and the coalition of Nigerian consumers, approached the tribunal shortly after MultiChoice announced its plan to increase subscription tariffs on all its products, from April 1.
Whereas MultiChoice was sued as the 1st respondent in the matter, the Federal Competition and Consumer Protection Commission, FCCPC, was cited as the 2nd respondent.
In an amended originating summons he filed on June 20, the lawyer prayed the tribunal to issue an order, directing and mandating the cable service provider to adopt a pay-as-you-view model of billing for all its products and services in the country.
Aside from praying the tribunal to restrain MultiChoice from proceeding with its plan to increase subscription fees for its services and products pending the determination of the matter, the Claimants further demanded damages be awarded against the company to the tune of a million.
Though the tribunal initially granted an ex-parte motion that directed the parties to maintain status quo ante bellum, however, the company went ahead with the price increase on DStv and Gotv subscriptions.
MultiChoice had through its lawyer, Jamiu Agoro, challenged the jurisdiction of the tribunal to entertain the case.
It urged the tribunal to set aside its interlocutory order, contending that the Claimants lacked the locus standi to institute the action.
Meanwhile, in its judgement, the tribunal held that it had the requisite jurisdiction to hear the suit, even though it dismissed the substantive matter for want of merit.
The tribunal held that the price increase was valid, adding that the Claimants failed to establish that MultiChoice abused its dominant position in the market.
More so, the panel held that neither the FCCP, the tribunal itself nor any other body has the power to regulate price.
“Only the President has the powers to regulate or fix prices of goods and services under stipulated circumstances which do not apply in this instance”, it held.
The tribunal held that the Claimants failed to adduce any evidence or to establish how they suffered psychological trauma, hardship or how their rights were violated as a result of the price hike.
It held that the litigants were unable to show evidence of hardship suffered by the consumers of MultiChoice’s services and products.
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