MultiChoice: Only President has right to regulate prices, court rules

A Competition and Consumer Protection (CCPC) Tribunal sitting in Abuja has held that tariff increase by MultiChoice, the operator of Gotv and DStv, was just and legal, and that only the President of Nigeria has powers to regulate prices in certain circumstances.

The tribunal, yesterday, held that the power to regulate prices of goods and products could not, therefore, be delved into by protection commission (second respondents) or the tribunal.

The tribunal, however, ordered MultiChoice to investigate operation of pay-as-you-view subscription and report back within six months.

Festus A. Onifade, a legal practitioner, and Coalition of Nigeria Consumers had sued the company and Federal Competition and Consumer Protection Commission (FCCPC) as first and second respondents, shortly after the company, on March 22, announced its plan to increase price of its products from April 1.

The claimants had filed a suit against MultiChoice over the planned hike. They had prayed the tribunal for an order restraining the firm from taking the action on April 1, pending hearing and determination of the motion on notice, dated and filed on March 30.

The tribunal granted the ex-parte motion, directing parties to maintain status quo ante bellum. But despite the order, the company was alleged to have gone ahead with the price increase on DStv and Gotv subscriptions.

On April 11, the tribunal, again, ordered MultiChoice to revert to the old prices by maintaining the status quo of its March 30 order, pending hearing and determination of the substantive matter.

But counsel for MultiChoice, Jamiu Agoro, in a motion in notice, challenged the jurisdiction of the tribunal to hear the matter.

The prayers, according to the lawyer, include “an order for stay of execution of the order of the honourable tribunal made on March 30, pending the determination of the instant application, and an order setting aside and discharging the order of the CCPT made on March 30 in this current suit.

“An order of the honourable tribunal striking out the suit for want of jurisdiction by the tribunal, and for such further order or other orders as this honourable tribunal may deem fit to make in the circumstances.”

In his six grounds enumerated, Agoro argued that the tribunal lacked jurisdiction to entertain the suit as the claimants lacked competence to institute the action.

The tribunal had, on June 20, granted Onifade’s reliefs in an application seeking leave to amend his earlier originating summons and deeming it to be properly filed.

The lawyer, in another originating summons, sued the firm for N10 million damages.

Onifade, in the amended originating summons dated June 17 but filed June 20, also sought the order of the tribunal directing and mandating MultiChoice to adopt a pay-as-you-view model of billing for all its products and services forthwith.

In the judgment delivered, yesterday, the tribunal ordered MultiChoice to provide its audited financial statement report of 2021 to the tribunal by September 8, to ascertain the financial status of the company and enable it determine the fine to impose for disobedience to the tribunal’s order of March 30.

The tribunal, on March 30, granted the ex-parte application directing parties to maintain the status quo, pending the determination of the entire suit.

But MultiChoice disregarded the restraining order by going ahead to increase the price of its products and services.

The tribunal also held that the conduct of the first defendant did not amount to market dominance, as Nigeria is a free market economy.