MultiChoice Nigeria Limited, the embattled operator of DStv and Gotv cable services, has won the legal suit brought against it by some Nigerian consumers over an increase in its service tariff.
The Competition and Consumer Protection, CCPC, Tribunal sitting in Abuja, on Tuesday, dismissed the suit for lacking merit.
Earlier in the year, a legal practitioner, Festus Onifade, backed by a coalition of consumers, had instituted the case against MultiChoice over its attempt to hike the tariff of subscription bouquets.
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Onifade instituted the suit, which has MultiChoice as the first respondent and the Federal Competition and Consumer Protection Commission, (FCCPC) as the second respondent, before the CCPC in March, praying the tribunal to stop the tariff hike billed to take effect April 1.
The tribunal had ordered MultiChoice to suspend the planned tariff hike pending the outcome of the suit.
“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 tribunal had ruled.
But in its final judgment, the three-member panel tribunal headed by Thomas Okosun, dismissed the suit, which includes amended originating summons that Onifade filed in June, praying the tribunal to order MultiChoice Limited to implement a pay-as-you-view model of billing for all its products and services in the country.
The plaintiff also prayed the court to award damages against MultiChoice at the tone of N10 million, besides the other prayers.
In disapproval of the satellite company’s planned tariff hike, Nigerian lawmakers had backed consumers asking for stable subscription fees or pay-per-view pricing model.
But in defiance, MultiChoice had allegedly implemented the tariff hike on its bouquets both on DStv and Gotv. The company also challenged the jurisdiction of the CCPC Tribunal to entertain the case. But the tribunal held that it has the requisite jurisdiction to hear the suit.
However, in the final ruling, the tribunal held that plaintiffs failed to establish that MultiChoice abused its dominant market position, making the price increase valid.
It also held that the claimants failed to adduce any evidence or to establish how they suffered psychological trauma, hardship or how their rights were violated as a result of the price hike. The litigants were also unable to show evidence of hardship suffered by the consumers of MultiChoice’s services and products, the panel ruled.
In addition, the panel ruled that neither the claimants, including the FCCP, the tribunal itself nor any other body apart from the president has the power to regulate price.
“Only the President has the powers to regulate or fix prices of goods and services under stipulated circumstances which do not apply in this instance”, it ruled.
With this ruling, it is expected that the controversy that has trailed MultiChoice’s attempt to increase tariff, in line with market trends, will be finally laid to rest. The South African-based company had cited forex scarcity and increasing cost of running business in Nigeria as the reasons behind its move to increase subscription fees.