In a landmark decision, the Federal Competition and Consumer Protection Tribunal (FCCPT) has directed Multichoice Nigeria, the operator of DStv and GOtv, to provide Nigerian subscribers with a free one-month subscription.
This ruling comes after a protracted legal battle between the company and the Federal Government concerning alleged violations of consumer rights.
Defiance of Court Orders Leads to Fines
The Tribunal additionally imposed a N150 million fine on Multichoice for defying earlier court rulings. These rulings included an injunction restraining the company from raising subscription prices for its DStv and GOtv packages and a requirement for providing subscribers with a one-month notice before price adjustments.
Price Hike Triggers Legal Dispute
The legal dispute originated in April 2024 when Multichoice announced price increases for both DStv and GOtv packages. The company attributed the hikes to rising operational costs but faced criticism for neglecting customer concerns and potentially exploiting its dominant market position.
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The Federal Government responded by filing a lawsuit against Multichoice, accusing them of violating the Federal Competition and Consumer Protection Act (FCCPA) through anti-competitive practices.
Focus Shifts to Notice, Not Price Increase
While Multichoice’s lawyers argued that past settlements had resolved price regulation disputes, the Tribunal ultimately focused on the lack of proper notification before the price increase. This absence of notice, not the price increase itself, became the basis for the FCCPT’s decision against Multichoice.
Ruling a Win for Consumers, Prompting Review
The FCCPT’s ruling represents a significant victory for Nigerian consumers who have long grappled with Multichoice’s pricing structure and business practices. The court has directed the company to review its pricing strategy to ensure compliance with the FCCPA. This move paves the way for potentially lower subscription costs in the future.
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Multichoice’s Next Steps and a Hope for Improvement
Multichoice has yet to comment on the ruling and is expected to appeal the decision. However, the court has scheduled a hearing for July 3rd to address the substantive suit filed by the government.
For Nigerian subscribers, the one-month free subscription offers a welcome reprieve. The FCCPT’s decision sends a clear message to Multichoice and other companies operating in Nigeria – respect consumer rights and adhere to the law.
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It is hoped that Multichoice will comply with the ruling and strive to provide better services to its Nigerian customers.
