Court throws out case against DStv, GOtv price increase

The Competition and Consumer Protection Tribunal (CCPT) has dismissed a case challenging MultiChoice Nigeria’s subscription price hike after the claimant, Festus Onifade, opted to withdraw the suit. The decision came after Onifade, during a tribunal hearing, made an oral request to abandon the case, citing concerns that MultiChoice would use the tribunal’s upcoming vacation period to delay proceedings by pursuing an appeal at the Court of Appeal.

Onifade initially filed the lawsuit to contest what he described as the oppressive practices of multinational corporations towards Nigerian consumers, particularly concerning the subscription price increase planned by MultiChoice. However, during the hearing, he announced his decision to discontinue the case, stating, “I am abandoning this matter. I am withdrawing this case.”

MultiChoice’s counsel, Senior Advocate of Nigeria Moyosore Onigbanjo, did not object to the withdrawal, nor did the counsel for the Federal Competition and Consumer Protection Commission (FCCPC). The tribunal, therefore, granted Onifade’s request, ruling that the case be struck out without any costs awarded.

Earlier, on April 29, the tribunal had issued an interim order preventing MultiChoice from implementing the price hike, which was scheduled to take effect on May 1, 2024. The tribunal temporarily restrained the company from proceeding with the increase until a motion on notice filed by Onifade could be heard.

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MultiChoice responded by appealing the decision and filing for a stay of proceedings. The company argued that the tribunal lacked jurisdiction and that a similar case had previously been resolved in their favor. Despite this, the tribunal, led by Thomas Okosu, imposed a 150 million naira penalty on MultiChoice for disobeying its orders and directed the company to offer a one-month free subscription to affected customers.

During the resumed hearing, Onigbanjo requested an adjournment, pending the Court of Appeal’s decision on their applications. However, Onifade objected, arguing that proper legal procedures had not been followed by MultiChoice in seeking a stay of proceedings.

Ultimately, the tribunal agreed to proceed with the case until Onifade chose to withdraw, leading to the suit being struck out. The tribunal’s decision marks a significant development in the ongoing legal battle over subscription pricing in Nigeria’s pay-TV market.