THE Competition and Consumer Protection Tribunal fined Multichoice Nigeria N150 million for challenging the court’s jurisdiction and ordered the company to provide Nigerians with a one-month free subscription on DStv and GOtv.
The tribunal had previously restrained Multichoice from increasing subscription fees without adequate notice, following a suit by Barrister Festus Onifade who argued that the 8-day notice given by Multichoice for a price hike was insufficient.
Multichoice’s lawyer argued that price regulation disputes had been settled before and should not be re-litigated, while Onifade emphasized the lack of proper notice rather than the price hike itself, leading the tribunal to assert its jurisdiction and rule against Multichoice.
On Friday, 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.
“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu said.
He said he looked at relevant provisions cited by parties and did not find where an aggrieved consumer who seeks to enforce his rights is required to file a complaint to the President of Nigeria or the Price Control Board.
The judge also observed that the claimant wrote letters to the FCCPC before filing his case.
“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.
Besides, the tribunal held that the claimant’s instant suit is not questioning the Multichoice price hike as claimed by Onibanjo but the illegality of his client’s 8-day notice to the customers.
The tribunal noted that Multichoice has already disobeyed its interim orders, adding that its action of hiking DSTV and GOTV prices is condemnable and must not be condoned by the tribunal.
The tribunal dismissed Multichoice’s preliminary objection for disobeying its interim orders.
Subsequently, 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.
“Multichoice is hereby ordered to give Nigerians one month free subscription”, the court ruled.
Eighteen-Eleven Media