MultiChoice Escapes Penalty as Tribunal Allows Lawyer to Withdraw DSTV, GOTV Price Hike Case

The Competition and Consumer Protection Tribunal (CCPT) has granted the withdrawal of a case filed by Festus Onifade against MultiChoice Nigeria, citing a 150 million naira fine and a one-month free subscription for violating interim orders. The tribunal had earlier ruled in favor of Onifade, temporarily restraining MultiChoice from increasing its subscription rates.

Onifade had initially requested that the tribunal restrain MultiChoice from implementing a price hike scheduled to take effect on May 1, 2024. However, MultiChoice appealed the decision and filed for a stay of proceedings. The tribunal subsequently rescheduled the case to November, but Onifade opted to withdraw the suit without seeking costs.

The case began when Onifade sued MultiChoice Nigeria and the Federal Competition and Consumer Protection Commission (FCCPC) over the price hike. A three-member panel chaired by Justice Thomas Okosu initially ruled in favor of Onifade, ordering MultiChoice to provide a one-month free subscription and imposing a 150 million naira fine for violating interim orders.

However, MultiChoice filed an appeal, citing that the tribunal erred in its decision. The company also provided reasons for the price hike, stating that it was necessary to mitigate the impact of the weakening exchange rate in Nigeria. The company argued that it had notified customers and regulatory authorities before the increase was implemented.

During the resumed hearing, MultiChoice’s lawyer, Moyosore J. Onibanjo (SAN), asked the tribunal to adjourn the matter pending the determination of the appeal. Onifade countered that the issue was whether MultiChoice provided adequate notice regarding the price hike, not about price regulation or increase.

In its ruling, the tribunal chair, Thomas Okosu, dismissed MultiChoice’s preliminary objection for disobeying its interim orders and imposed a 150 million naira administrative penalty on MultiChoice. However, MultiChoice continued with its price hike despite the ongoing ruling.

Onifade withdrew his case on Monday, citing concerns that MultiChoice would use its appeal to frustrate his case. The tribunal granted his request without awarding costs.