Competition Tribunal Halts MultiChoice’s Tariff Increase Pending Hearing

MultiChoice

The Competition and Consumer Protection Tribunal (CCPT) in Abuja has granted an application for substituted service of an interim order restraining MultiChoice Nigeria Limited from increasing tariffs on DStv and Gotv packages starting from May 1. The tribunal granted the application following allegations that the pay-TV firm's officers in Abuja refused to receive court documents.

The tribunal's three-member panel, presided over by Saratu Shafii, approved the applicant's motion for substituted service, directing that the order be pasted at MultiChoice's corporate headquarters and other known addresses across Nigeria. The tribunal also ordered that the documents be sent to the company's known email addresses and social media handles, as well as be posted in the CCPT communication outlet.

The tribunal's decision came after Festus Onifade, the applicant, filed a suit seeking to restrain MultiChoice from increasing tariffs. MultiChoice had announced a price increment across its DStv and GOtv packages, citing the cost of business operations in Nigeria as the reason for the hike.

Despite the tribunal's previous order to maintain the old prices pending the hearing and determination of the substantive matter, MultiChoice went ahead with the price increase on April 1, 2022. Onifade, the claimant, accused MultiChoice of contempt for disobeying the tribunal's order. The tribunal dismissed Onifade's initial suit, stating that the power to regulate prices of goods and services resides with the president, not the FCCPC.

Onifade's current suit alleges that MultiChoice failed to follow due process of law in announcing the price hike, citing short notice given to customers. The matter is currently before the Court of Appeal in Abuja.

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