A Competition and Consumer Protection (CCP) tribunal sitting in Abuja has dismissed a suit, challenging the legality of price increase by MultiChoice Nigeria Limited on its DStv and GOtv subscription-based platforms in Nigeria.
In its judgment on Tuesday, a three-member panel of the tribunal, dismissed the suit for lack of merit.
A lawyer, Festus Onifade, had filed the legal action on behalf of himself and the coalition of Nigerian consumers.
He also joined the MultiChoice Nigeria Limited, the Federal Competition and Consumer Protection Commission (FCCPC) as co-defendants to the suit.
Onifade asked the tribunal to restrain MultiChoice from hiking subscription fees for its services and other products on April 1, pending the determination of the motion on notice dated and filed on March 29.
But MultiChoice has effected the price hike in its DStv and GOtv.
Onifade said he had lodged a petition at the FCCPC in May and June 2020 when MultiChoice planned an increase on its tariff in the same year.
He added that recycled content and pay-as-you-use were also raised apart from tariff hikes.
The lawyer said he approached the tribunal after the FCCPC failed to take action on the petition.
But the tribunal in its verdict read by Thomas Okosun, held that “the price increase is valid.”
The tribunal further held that the claimant failed to establish that MultiChoice abused its dominant position in the market, saying that only the President has the power to regulate or fix the prices of goods and services.
It said, “Only the President has the powers to regulate or fix prices of goods and services under stipulated circumstances which do not apply in this instance.”
The tribunal also held the claimants failed to show evidence or establish how they suffered “psychological trauma, hardship or violation of their human rights” as a result of the price hike.
It said, “He failed to show evidence of hardship suffered by consumers.
The tribunal further held that MultiChoice (the first defendant) cannot be punished on the grounds that the FCCPC (the second defendant) did not inform or invite them to defend the petition.
According to the tribunal, the FCCPC took appropriate steps to investigate and address the issues raised in the petition except for price hike because it is “beyond the mandate of the commission”.
But the tribunal has ordered the FCCPC to expedite its investigation into the petition and confirm if MultiChoice operates a pay-as-you-go system in South Africa and asked the regulatory body to submit its findings within six months.
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