The Competition and Consumer Protection Tribunal (CCPT) has fined Multichoice Nigeria N150 million for challenging the court’s jurisdiction. In a ruling on Friday, the tribunal ordered the company to provide one-month free subscriptions on DStv and GOtv for Nigerians.
Multichoice Nigeria had announced an increase in the cost of subscriptions for its DStv and GOtv packages on April 24. However, on April 29, the tribunal stopped the company from increasing its tariffs and cost of products and services, which was scheduled to begin on May 1. In response, Multichoice Nigeria challenged the tribunal’s verdict restricting it from increasing the prices of its packages.
The company, through its lawyer, Moyosore Onibanjo, filed an application on April 30 challenging the jurisdiction of the tribunal on the price restraining order. However, the tribunal ruled that it had jurisdiction over the matter and that Multichoice’s actions were unacceptable.
The tribunal cited section 39(2) of the Federal Competition and Consumer Protection Commission (FCCPC) Act, which states that the tribunal shall have jurisdiction throughout the federation and on all commercial activities aimed at making a profit. The tribunal also held that the claimant’s suit was not questioning the Multichoice price hike but the illegality of the company’s eight-day notice to customers.
The tribunal deemed Multichoice’s violation of interim orders and hike in DStv and GOtv prices as unacceptable and ordered the company to pay N150 million as an administrative penalty. Additionally, the tribunal ordered Multichoice to give Nigerians one month free subscription on DStv and GOtv