MultiChoice Nigeria has announced its intention to appeal a ruling by the Competition and Consumer Protection Tribunal in Abuja, which fined the company N150 million for challenging the tribunal’s jurisdiction.
News About Nigeria reported that the tribunal also ordered MultiChoice to provide a one-month free subscription to its Nigerian DStv and GOtv customers.
The tribunal’s ruling came in response to a lawsuit filed by Abuja-based lawyer Festus Onifade, who sought to prevent MultiChoice from increasing its monthly subscription fees.
On April 29, the tribunal issued an interim order restraining MultiChoice from implementing the planned price hike, pending the resolution of Onifade’s suit.
Onifade’s legal representative, Ejiro Awaritoma, filed an ex-parte motion requesting the tribunal to stop the price increase and protect the rights of the claimant and other consumers.
The price hike, announced by MultiChoice, was set to take effect on May 1, 2024, just four months after a previous adjustment.
MultiChoice attributed the increase to the rising cost of production in Nigeria, affecting both new and renewing subscribers.
MultiChoice Nigeria CEO John Ugbe defended the price adjustment, stating that it was necessary to continue delivering high-quality content to subscribers across the country.
However, the tribunal’s ruling imposed both the fine and the requirement for a one-month free subscription as penalties for the company’s non-compliance with the interim order.
In response to the ruling, MultiChoice issued a statement expressing its disagreement and confirming plans to appeal.
The statement read, “MultiChoice Nigeria is aware of the recent ruling by the Competition and Consumer Protection Tribunal regarding its jurisdiction to entertain a price regulation matter. We disagree with the ruling, and will therefore file an appeal against the said ruling. As the matter is currently sub-judice, we are restrained from making further comments.”
