Relief For DSTV, GOtv Subscribers As Tribunal Stops Multi-Choice From Increasing Tariffs

A Competition and Consumer Protection Tribunal sitting in Abuja has restrained Multi-Choice Nigeria Limited from increasing its tariffs and cost of products and services scheduled to begin on April 1.

MultiChoice, the parent company of DSTV and GOtv, had issued a notice of a price increase of subscriptions of their packages by over 14 per cent.

The hike was being planned to take effect from April 1, according to the parent company.

Multichoice said its DStv Premium package would be increased to N21,000 from the N18,400 previously charged; Compact + would now be N14,250 as against the N12,400.
Compact bouquet would be increased N9,000 up from N7,900; Confam N5,300 as against N4,615; Yanga N2,950 compared to the N2,565. Padi would also been increased from N1,800 to N2,150.

The DSTV Business package was raised to N2,669, while Xtraview + PVR access fee was hiked to N2,900) up from N2500.

The new prices for the GOtv package are: Gotv Max for N4,150, GOtv Jolli for N2,800, GOtv Jinja for N1,900, GOtv Lite for N900.

Hearing on the matter, the three-member tribunal presided over by Thomas Okosun, gave the order to stop the price increase following an ex-parte motion moved by Festus Onifade, a legal practitioner, on behalf of himself and the Coalition of Nigeria Consumers.

Other members of the tribunal include Sola Salako Ajulo and Ibrahim EL-Yakubu.

In the suit marked: CCPT/OP/1/2022, Multi-Choice Nigeria Limited and Federal Competition and Consumer Protection Commission are 1st and 2nd respondents respectively.

The motion ex-parte filed by the applicants on March 29 was brought pursuant to Section 39 (1) & (2) of the FCCPC Act 2018; Order 26, Rule 5 (2), (3) & 26 Rule 6 (1) & (2) Federal High Court (Civil Procedure) Rules 2019 and Section 47(a), (b), (c),(d), of the Federal Competition and Consumer Protection Act 2018.

The applicants had prayed for “an order of interim injunction restraining the 1st defendant/respondent, either by itself, agents, representatives, officers or privies, howsoever described, from carrying out the impending increase in tariffs and cost of its products and services intended to take effect from 1st April, 2022, until the hearing and determination of the motion on notice already filed before this tribunal.

“An order of the Honourable Tribunal mandating the 1st defendant/respondent to maintain status quo pending the hearing and determination of the motion on notice.

“And for such further order or other orders as this Honourable Tribunal may deem fit to make in the circumstance.

But ruling on the matter, the Tribunal stated, “The 1st defendant/respondent is hereby restrained, either by itself, agents, representatives, officers or privies, howsoever described, from carrying out the impending increase in tariffs and cost of its products and services intended to take effect from 1st April, 2022 until the hearing and determination of the motion on notice already filed before this Honourable Tribunal.

“The 1st defendant/respondent is hereby mandated to maintain status quo pending the hearing and determination of the motion on notice.”

The matter was adjourned until April 11 for the hearing and determination of the motion on notice.

“All parties in this suit are to appear before this Honourable Tribunal on the 11th day of April, 2022,” it ruled.

The South Africa-owned company is implementing the increase few weeks after the Federal Competition and Consumer Protection Commission ordered Multichoice to introduce a price lock and toll-free customer lines for its customers.

The FCCP had in a statement on March 18, accused MultiChoice of ‘abuse of dominance’ in the Nigerian market.

The FCCPC had said, “For the purpose of ensuring that any material changes in key terms with respect to value propositions including, but not limited to cost or price, on account of its dominance, and to prevent consumers from being otherwise exploited, including by the conduct of other players in the market.

“MultiChoice shall introduce additional features prior to any proposed or contemplated changes in terms and conditions as identified in this Order to the extent that such change in price constitutes an increase in what consumers pay, regardless of any value addition.”

A price lock option, the FCCPC said, would allow Nigerian subscribers to maintain the same subscription fee for a minimum period of one year subject to a contractual agreement that clearly specifies the applicable terms and conditions.

ENDS