Tribunal Imposes Fine on Multichoice
Multichoice Nigeria, owners of DStv and GOtv services was fined with the sum of N150 million for increasing its monthly subscription fees, before a Tribunal decision to do so, even while it was previously restrained from doing so by the Tribunal. This sanction came on Friday from the Competition and Consumer Protection Tribunal.
One Month Free Subscription Ordered
Additionally, the tribunal ordered Multichoice to provide its Nigerian customers with one month of free subscription to both DStv and GOtv packages. This decision came after the tribunal found that Multichoice failed to give adequate notice before implementing the price hike.
Background of the Case
The issue began when Abuja-based lawyer, Festus Onifade, filed a lawsuit against Multichoice, arguing that the eight-day notice given for the price increase was insufficient. Despite the court’s interim order to halt the price hike, Multichoice proceeded with it, prompting Onifade to file contempt charges against the company’s Abuja branch manager, Mohammed Sani.
Contempt Charges and Tribunal Ruling
Onifade’s contempt charge, filed on May 7, sought the tribunal’s directive for Multichoice to pay N1 billion for disobeying the interim order issued on April 29. Although Multichoice argued that previous rulings had resolved price regulation issues, the tribunal affirmed its jurisdiction and ruled in favour of Onifade.
Tribunal’s Verdict
The three-man panel led by Thomas Okosu unanimously fined Multichoice N150 million and ordered the one-month free subscription for affected customers. The court also scheduled July 3 for the hearing of the substantive suit brought by Onifade.
Future Hearings and Implications
The upcoming hearing will further address the dispute between Multichoice and its customers. The tribunal’s decision highlights the importance of compliance with regulatory orders and adequate notice for service changes.
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