… orders firm to submit audited financial statement
The Competition and Consumer Protection (CCPC) Tribunal sitting in Abuja on Tuesday refused to grant the prayers of a complainant over the recent hike of pay TV subscription rates by MultiChoice, the operator of DStv and Gotv, in the country.
The three-member tribunal, headed by Mr Thomas Okosun, in its ruling held that the power to regulate prices of goods and services did not reside in the Federal Competition and Consumer Protection Commission (FCCPC), the consumer-matter regulatory agency, but in the president.
The tribunal held that the claimants failed to prove that the pay TV service provider abused its power of dominance in the market since Nigeria operates a free market economy.
The panel also refused to grant the claimants’ prayer to direct the firm to adopt a pay-as-you-view model of billing for all its products and services.
However, it ordered FCCPC to investigate if MultiChoice adopts a pay-as-you-view package for its products and services in other countries, especially South Africa, and report back to it within six months.
While also dismissing the claimants’ demand for a N10 million damages, the panel declared that prayers 1, 2 and 3 of the claimants were not grantable as the power to regulate prices of goods and services only resides in the president of Nigeria, adding that the claimant’s prayers 4 and 5 of the claimants lacked merit.
The panel, however, ordered the management of MultiChoice to appear before it on Sept. 8 with their 2021 audited financial statements.
.
The tribunal had, on July 25, fixed today for judgment in the suit filed by Barr. Festus Onifade, and Coalition of Nigeria Consumers (claimants), on behalf of themselves and others.
The claimants had sued the company and FCCPC as 1st and 2nd respondents, shortly after the company, on March 22, announced its plan to increase price of its products from April 1.
They had prayed the tribunal for an order, restraining MultiChoice from increasing the subscription rates for its services and other products on April 1, pending the hearing and determination of the motion on notice dated and filed on March 30.
The tribunal then granted the ex-parte motion, directing parties to maintain status quo ante bellum.
But despite the tribunal’s order, the company was alleged to have gone ahead with the price increase on DStv and Gotv subscriptions and other products.
The claimant, however, raised the issue of contempt, accusing MultiChoice of disobeying the tribunal order of March which restrained them from going ahead with the price increase.
Multichoice had from April 1 this year revised upward its subscription rates while the suit was pending, hiking subscriptions for all its bouquets and its premium package on DSTV to N21,000 from N18,400.
It also raised the Compact Plus from N12,400 before to N14,250, and Compact to N9,000 from N7,900.
