Multichoice Nigeria, a prominent pay-TV operator, has filed an appeal against the Competition and Consumer Protection Tribunal’s ruling imposing a N150 million fine and “free monthly subscription order” on it following its preliminary objection challenging its jurisdiction, among other reliefs. the
According to people acquainted with the development, “a notice of appeal” has been filed against the Tribunal’s recent verdict.
The tribunal had restrained MultiChoice from increasing its subscription rates pending the hearing and determination of a motion on notice filed by Barrister Festus Onifade.
What transpired at the tribunal
Onifade, who sued Multi-Choice Nigeria Ltd, and the Federal Competition and Consumer Protection Commission (FCCPC), accused Pay TV of unjustly increasing subscription fees without one-month notice to customers and leveraged it to seek interim orders against Pay TV.
A three-member tribunal chaired by Saratu Shafii had ruled in favour of Onifade by restraining Multichoice in the interim, in the suit marked CCPT/OP/2/2024, restraining the pay TV from going ahead with the impending price increase scheduled to take effect from 1st May 2024 pending the hearing and determination of the Motion on Notice.
But Multichoice’s lawyer, Moyosore .J. Onibanjo (SAN) had filed a preliminary objection urging the court to decline jurisdiction on the suit filed by Festus Onifade and strike it out because such a price dispute case had been decided before in favour of his client.
On his part, Onifade argued that the issue he placed before the court is whether Multichoice Nigeria gave adequate notice in respect of the May 1, 2024 price TV subscription increase, and not price regulation or increase.
In its ruling, the three-man panel chaired by Justice Thomas Okosu 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.
Besides, the tribunal held that the claimant’s instant suit does not question the Multichoice price hike, as Onibanjo claimed, but the illegality of his client’s 8-day notice to the customers.
The tribunal dismissed Multichoice’s preliminary objection for disobeying its interim orders and subsequently imposed a 150 million administrative penalty on Multichoice and a one-month subscription order against Pay-TV.
