MultiChoice Wins Case Withdrawal in Subscription Price Hike Dispute

The Competition and Consumer Protection Tribunal (CCPT) has officially accepted the withdrawal of a case concerning the subscription price hike against MultiChoice Nigeria. The decision was made by a three-member panel, led by Thomas Okosu, after Barrister Festus Onifade requested to withdraw his case against the well-known Pay TV provider.

Nairametrics reported that just earlier, the tribunal had slapped MultiChoice with a hefty fine of 150 million naira and instructed them to offer one month of free subscription due to their disobedience to temporary orders that prohibited price increases for DSTV and GOTV services.

The tribunal had previously placed a restriction on MultiChoice, preventing them from raising their subscription costs while a motion filed by Festus Onifade was pending. Onifade had initiated legal action against MultiChoice Nigeria Ltd and the FCCPC regarding the controversial price increase.

A previous ruling by a different three-member tribunal headed by Saratu Shafii had temporarily blocked MultiChoice from going ahead with the planned price hike, scheduled for May 1, 2024, until the motion could be properly heard.

In response, MultiChoice’s lawyer, Moyosore J. Onibanjo, had filed an objection, insisting that the tribunal should not have jurisdiction over Onifade’s lawsuit because a similar price dispute had already been settled in favor of MultiChoice in the past.

Onifade countered, stating that the case revolved around whether MultiChoice gave adequate notice about the impending price increase rather than the validity of price regulation itself.

The tribunal, under Justice Thomas Okosu, dismissed MultiChoice’s objections for not adhering to its prior orders, which led to the substantial 150 million naira penalty alongside the one-month subscription directive against the Pay TV provider.

Following this, MultiChoice filed an appeal claiming the tribunal had made errors in its judgment. They also filed counter-affidavits explaining that the price increase was necessary due to Nigeria’s worsening exchange rate, but they had attempted to keep the increase as minimal as possible.

Onifade argued for the tribunal to proceed with his case, emphasizing that it was essential for justice. When the hearings resumed, Onibanjo requested an adjournment until the Court of Appeal could make a determination on the applications filed by MultiChoice.

Onifade argued that the tribunal had already been made aware of this request and had set a hearing date for July 29 to continue the matter.

MultiChoice also claimed the tribunal could only address urgent matters during its designated vacation period from July to September, but Onifade insisted that the schedule of the tribunal should not be dictated by them.

During the judge’s ruling, Okosu stated that although MultiChoice had the right to appeal, they needed to follow the appropriate legal procedures. However, he concluded that the tribunal would continue hearing the case.

As the proceedings unfolded, Onifade announced he no longer wanted to proceed with the case, fearing that MultiChoice could use the vacation period to further delay matters.

With Onifade stating, “I am abandoning this matter. I am withdrawing this case,” both the FCCPC’s lawyer and Onibanjo expressed no objections.

The tribunal approved Onifade’s request to withdraw without costs being awarded against him.

Recently, MultiChoice announced a price adjustment for DStv and GOtv packages scheduled for May 1, 2024. According to their communiqué to subscribers, the decision was driven by increased business operational costs.

The communication acknowledged the impact of the price change on customers, affirming their commitment to providing quality entertainment, even as they faced economic challenges.

This price adjustment led to an increase of 25% to 26% across various MultiChoice packages, and the FCCPC stated they would be reviewing MultiChoice’s reasons for the price hike, potentially involving other regulatory agencies like the NBC.

Amid this backdrop, MultiChoice Group reported an 18% decline in active DStv subscribers, attributing this to Nigeria’s challenging economic conditions.