A competition and shopper protection tribunal (CCPT) has fined Multichoice Nigeria N150 million for challenging the court’s jurisdiction.
In a ruling on Friday, the tribunal requested the company to supply one-month free subscriptions on DStv and GOtv, for Nigerians.
On April 24, Multichoice Nigeria announced an increase in the cost of subscriptions for its DStv and GOtv bundles.
However, on April 29, the tribunal ceased Multi-Choice from increasing its tariffs and cost of products and services, which was planned to begin on May 1.
In reaction, Multichoice Nigeria, in May, challenged the tribunal’s verdict restricting it from expanding the costs of its packages.
The company, through its attorney, Moyosore Onibanjo, recorded an application on April 30 challenging the jurisdiction of the tribunal on the price restraining order made.
In its ruling on Friday, a three-man panel, led by Thomas Okosu, cited section 39(2) of the Federal Competition and Consumer Protection Commission (FCCPC) Act that states that the “tribunal might 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 ruled.
Okosu said he reviewed relevant provisions referenced by parties and found no provision where an aggrieved consumer who seeks to uphold his rights is required to file a complaint to the Nigerian president or the price control board.
“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 moreover held that the claimant’s suit was not addressing the Multichoice price hike as claimed by Onigbanjo, but the illicitness of his client’s eight-day notice to the customers.
The tribunal regarded Multichoice’s infringement of interim orders and hike in DStv and GOtv prices as unsatisfactory, noting that it should not be endured.
The tribunal also expelled Multichoice’s preliminary objection for disobeying its interim orders.
In this way, the tribunal imposed an administrative penalty on Multichoice for failing to comply with an order of the tribunal.
“The first defendant is hereby mandated to pay N150 million penalty,” the verdict rules.
Okosu moreover ruled that Multichoice is “hereby ordered to give Nigerians one month free subscription”.
