Subscription price hike: Tribunal slams Multichoice N150m, orders free DStv, GOtv subscriptions

Justice Thomas Okosu-led three-man panel of the Competition and Consumer Protection Tribunal on Friday slammed a N150 million fine on Multichoice Nigeria while also ordering Multichoice to provide a one-month free subscription on its DStv and GOtv platforms.

The Informant247 gathered that a lawyer, Festus Onifade, had sued Multichoice over its increase in subscription rates on its DStv and GOtv packages from May 1, 2024.

The tribunal had restrained Multichoice from implementing the price increase pending the motion hearing.

FCCPC accused Pay TV of unjustly increasing subscription fees without one-month notice to customers and leveraging this to seek interim orders against Pay TV.

But Multichoice challenged the jurisdiction of the tribunal, also arguing that the power to regulate prices is vested in the President of the Federal Republic of Nigeria.

However, Justice Thomas Okosu, in his judgment, held that Section 39(2) of the FCCPC Act states that the tribunal shall have jurisdiction throughout the federation and on all commercial activities aimed at making a profit.

“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu held.

“I have come to the conclusion that this tribunal has the jurisdiction to preside over consumer rights as in the instant case, and I resolve this issue against Multichoice,” the judge said.

The Tribunal added that Multichoice had disobeyed its orders, condemning hiking DSTV and GOTV prices.

Back story

Multichoice announces increase in price of DStv, GOtv packages four months after its last increment

South Africa-owned broadcasting company Multichoice, on Wednesday, announced an increase in the prices of its offerings in Nigeria four months after its last increment.

According to reports, the company reviewed prices in its packages across the board, whereas the new prices take effect from May 1, 2024.

With the latest price hike, the DStv Premium package increased from N29,500 to N37,000. Similarly, the DStv Compact+ went up from N19,800 to N25,000, while the Compact package increased from N12,500 to N15,700.

The Comfam package moved from N7,400 to N9,300. Yanga package increased from 4,200 to N5,100, while the Padi package increased from N2,950 to N3,600. HDPVR was increased from N4,000 to N5,000, the Access Fees package from N4,000 to N5,000, and XtraView moved from N4,000 to N5,000.

Meanwhile, the Gotv Supa+ package moved from N12,500 to N15,700, the Supa package from N7,600 to N9,600, and the Max package from N5,700 to N7,200.

While the Jolli package was jacked up from N3,950 to N4,850, the Jinja package moved from N2,700 to N3,300 and the Smallie package from N1,300 to N1,575.

Court halts Multichoice from hiking DStv, GOtv subscription rates

A Competition and Consumer Protection Tribunal (CCPT) sitting in Abuja on Monday halted the decision of MultiChoice Nigeria Limited to hike its tariffs and cost of products and services scheduled to kick-start on May 1.

Saratu Shafii-led three-member tribunal gave the interim order following an ex-parte motion moved by Ejiro Awaritoma, counsel for the applicant, Festus Onifade.

The tribunal, in a ruling, restrained Multi-Choice from going ahead with an impending price increase scheduled to take effect from May 1, pending the hearing and determination of the motion on notice filed before it.

“The 1st defendant is hereby restrained from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the motion on notice,” Shafii declared.

She, therefore, directed all parties in the suit to appear before the tribunal on May 7 at 10 a.m. for the hearing and determination of the motion on notice.

According to the News Agency of Nigeria, Onifade, in the suit marked: CCPT/OP/2/2024, dragged Multi-Choice Nigeria Ltd and the Federal Competition and Consumer Protection Commission (FCCPC) before the tribunal.

In the suit filed on April 29, Onifade, a legal practitioner, sought two orders.

These include “an order of interim injunction of this honourable tribunal restraining the 1st defendant whether by themselves, her privies, assigns by whatever name called from going ahead with impending price increase scheduled to take effect from 1st May 2024, pending the hearing and determination of the motion on notice.

“An order restraining the 1st defendant from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the Motion on Notice.”

Other members of the tribunal include Thomas Okosun and Dr. Umar Duhu.