*Says Tribunal ‘Breached Its Right’
MULTICHOICE Nigeria, owners of DSTV and GoTv services, has vowed to appeal the N150 million fine and order to offer one-month free subscription to its customers by the Competition and Consumer Protection Tribunal (CCPT), on Friday, June 7, for disobeying the orders restraining it from increasing its monthly subscription, pending the determination of a suit brought before it.
A three-man panel of the tribunal, led by Thomas Okosu, gave the order in a ruling in the suit filed by an Abuja-based lawyer, Festus Onifade.
Recall that the tribunal had previously ordered Multichoice not to increase its subscription fees without proper notice, following Onifade’s argument that the eight-day notice, as announced via email to its customers, given for the price hike was inadequate.
Following the company’s decision to go ahead with the hike, despite the court order, Onifade proceeded to file contempt charges against it.
The charges, filed on May 7, were instituted against the Manager of the Abuja branch of Multi-Choice Nigeria Limited, Mr. Mohammed Sani.
Onifade sought an order of the tribunal directing MultiChoice to pay the sum of N1billion “or any amount the tribunal deemed fit appropriate in this circumstance for the company’s deliberate actions in disobeying, contravening and failing to comply with the interim order” granted on April 29.
In a Notice of Consequence of Disobedience to Order of Court, Form 48, marked: CCPT/OP/02/2024, dated and filed on May 7, the notice warned Sani against disregarding the tribunal order.
The notice read: “Take notice that unless you obey the underlisted order of the Competition and Consumer Protection Tribunal, Abuja, given on the 29th day of April 2024, thus: “An order restraining the 1st defendant/respondent either by itself, agents, representatives, officers or privies, howsoever described, from carrying out the impending increase in tariffs and cost of its products and services intended to take effect from 1st May 2024, until the hearing and determination of the motion on notice already filed before this tribunal.”
Multichoice, on its part, argued that previous rulings had settled price regulation issues.
But Onifade insisted the length of notice was inadequate and more pressing than the price hike itself, prompting the tribunal to affirm its jurisdiction and ruling against Multichoice.
The tribunal 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 profit.
“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu said.
He said hving looked at relevant provisions cited by parties, he did not find where an aggrieved consumer who seeks to enforce his rights is required to file a complaint to the President of Nigeria or the Price Control Board.
The Judge also observed that the claimant wrote letters to the FCCPC before filing his case, adding: “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.”
Besides, the tribunal held that the claimant’s instant suit is not questioning Multichoice price hike, as claimed by its counsel, Moyosore J. Onibanjo (SAN), but the illegality of his client’s eight-day notice to the customers.
The tribunal noted that Multichoice has already disobeyed its interim orders, adding that its action of hiking DSTV and GOTV prices is condemnable and must not be condoned by the tribunal.
It dismissed Multichoice’s preliminary objection for disobeying its interim orders and subsequently imposed an administrative penalty on Multichoice for failing to comply with an order of the tribunal
It ruled: “The first defendant is hereby mandated to pay N150 million penalty.
“Multichoice is hereby ordered to give Nigerians one month free subscription.”
The court has fixed July 3 for a hearing of the substantive suit of the plaintiff.
But in its reaction, Multichoice said the tribunal “breached their right to fair hearing” by imposing the fine, despite its preliminary objection challenging the tribunal’s jurisdiction, among other reliefs.
Onibanjo insisted the tribunal did not accord him a fair hearing regarding his client’s price hike, saying: “The tribunal’s Orders shall be appealed immediately.
“The matter was adjourned to 7th June 2024 for ruling on our application challenging jurisdiction. However, surprisingly, rather than just ruling on its jurisdiction, the tribunal went ahead to pronounce us guilty of disobedience of its orders and issued severe sanctions against us all without hearing us on the matter in breach of our constitutionally guaranteed rights to a fair hearing.”
Multichoice had on Wednesday, April 24, 2024, announced new price adjustments on DStv and GOtv packages.
In the email message to subscribers, it said: “On Wednesday, 1 May 2024, we will adjust our prices across all our packages on OStv and GOtv.
“We understand the impact this change may have on you- our valued customer, but the rise in the cost of business operations, has led us to make this difficult decision. It remains our mission to provide the best entertainment and viewing experience to you and are committed to continue to deliver high-quality content and unparalleled service.”
