Justice Thomas Okosu of the Competition and Consumer Protection Tribunal has imposed a N150 million fine on Multichoice Nigeria.
The ruling was made on Friday by a three-man panel chaired by Justice Okosu, which also mandated Multichoice to provide one month of free subscription on its DStv and GOtv platforms.
The case was brought forward by lawyer Festus Onifade, who sued Multichoice after the company announced an increase in subscription rates for its DStv and GOtv packages, effective from May 1, 2024.
The tribunal had initially restrained Multichoice from implementing the price hike pending the hearing of the motion.
The Federal Competition and Consumer Protection Commission (FCCPC) accused Multichoice of unjustly increasing subscription fees without giving customers the required one-month notice and leveraging this to seek interim orders against the Pay TV company.
In response, Multichoice challenged the jurisdiction of the tribunal, asserting that the power to regulate prices is vested in the President of the Federal Republic of Nigeria.
On Friday, the tribunal panel, led by Justice Okosu, held that Section 39(2) of the FCCPC Act grants the tribunal jurisdiction throughout the federation and over all commercial activities aimed at making a profit.
“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu stated.
Justice Okosu further concluded, “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 tribunal criticized Multichoice for disobeying its orders and condemned the company’s decision to increase DStv and GOtv prices.
The ruling serves as a significant precedent in consumer rights protection, reinforcing the tribunal’s authority to oversee and regulate commercial activities that impact consumers across Nigeria.
