In a landmark decision on Friday, the Competition and Consumer Protection Tribunal imposed a fine of N150 million on Multichoice Nigeria, the parent company of DSTV and GoTv, for violating its directives. The tribunal had previously ordered Multichoice to halt any subscription price increases until a pending lawsuit was resolved.
Additionally, the tribunal mandated that Multichoice provide all Nigerian subscribers with a one-month free subscription to its DSTV and GoTv services.
The initial order followed a lawsuit filed by Abuja-based lawyer Festus Onifade, who argued that the eight-day notice given for a price hike was insufficient. Despite this directive, Multichoice proceeded with the price increase, prompting Onifade to file contempt charges against the company's Abuja branch manager, Mohammed Sani, on May 7.
The tribunal highlighted Multichoice's failure to comply with its interim order issued on April 29, which explicitly restrained the company from raising tariffs until further notice. Onifade sought a tribunal order directing Multichoice to pay N1 billion for its deliberate disobedience, although the tribunal settled on the N150 million fine.
Multichoice countered by asserting that prior rulings had resolved issues related to price regulation. However, the tribunal upheld its jurisdiction and ruled in favor of Onifade, emphasizing the inadequacy of the notice period over the price hike itself.
The tribunal has scheduled a hearing on the substantive suit for July 3.
