The Competition and Consumer Protection Tribunal in Abuja has taken a firm legal stand, providing a temporary stay on MultiChoice Nigeria Limited’s proposed price hike for its DStv and GOtv subscription packages. This restraining order was obtained on Monday in response to MultiChoice’s announcement last week of a price increase that was scheduled to go into effect on May 1, 2024.
The tribunal considered an ex-parte motion submitted by Ejiro Awaritoma, the lawyer for the complainant, Festus Onifade. The tribunal was chaired by Saratu Shafii, with assistance from members Thomas Okosun and Dr. Umar Duhu. After Awaritoma objected to the price rise, the tribunal issued an interim order prohibiting tariff increases until a more thorough investigation of the case could be carried out.
MultiChoice explained that the announced pricing modifications were required because of the rising costs of operating in the nation. But this action was immediately confronted with legal challenges, highlighting persistent worries about the fairness and affordability of pricing policies in vital service industries.
The company is expressly prohibited by the interim order from carrying out the price increase that was planned for May 1 until after the hearing and final determination of the motion on notice. The decision placed a strong emphasis on safeguarding Festus Onifade’s rights and, consequently, those of other customers who depend on MultiChoice’s services, against any acts that could have a negative impact.
“The 1st defendant is hereby restrained from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the motion on notice,” declared Shafii in the tribunal’s ruling. The case, recorded under the suit number CCPT/OP/2/2024, also involves the Federal Competition and Consumer Protection Commission (FCCPC) as a co-defendant, emphasizing the regulatory interest in ensuring fair competition and consumer protection practices are upheld.
Attorney Festus Onifade filed the lawsuit on April 29. In addition to trying to stop the price hike from going into effect right now, he also hopes to set a precedent that could affect future pricing strategies used by the industry’s service providers. The restraining order he sought are related to preventing MultiChoice from making pricing adjustments until a comprehensive legal analysis is carried out regarding the equity and validity of those modifications.
All parties involved are urged to be ready for a proceeding that might establish significant guidelines for consumer rights and commercial operations throughout Nigeria, with the hearing of the move on notice planned for May 7 at 10 am. This case offers an in-depth investigation of the problem of striking a balance between consumer protection and business needs.
