Competition and Consumer Protection (CCPC) Tribunal sitting in Abuja yesterday refused to grant the relief sought in a suit filed against MultiChoice, operator of DStv and Gotv, over the recent price hike on their products and subscription rates.
In its judgment, the three-member panel tribunal, headed by Mr. Thomas Okosun, dismissed the suit which was filed by a lawyer, Mr. Festus Onifade, on behalf of himself and a coalition of Nigerian consumers, as lacking in merit.
The tribunal held that the power to regulate prices of goods and services does not reside in the Federal Competition and Consumer Protection Commission (FCCPC), the regulatory agency, but in the President.
The tribunal, which held that the claimants failed to prove that MultiChoice had abused its power of dominance in the market, said since Nigeria operates a free market economy, the argument lacked merit.
The panel also refused to grant the claimants’ prayer to direct the firm to adopt a pay-as-you-view model of billing for its products and services.
It ordered FCCPC to investigate if the firm adopts a pay-as-you-view package for its products and services in other countries, especially South Africa, and report back to the court within six months.
In the suit, MultiChoice was the first respondent while the FCCPC was the second.
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The plaintiff approached the tribunal after MultiChoice announced its plan to increase subscription tariffs on all its products as from April 1.
In his amended suit on June 20, Onifade asked the tribunal to issue an order directing and mandating the cable television service provider to adopt a pay-as-you-view model of charging for its products and services in Nigeria.
He also demanded N10 million damages to be awarded against the company.
The panel ordered the management of MultiChoice to appear before it tomorrow (September 8) with their 2021 audited financial statements.
It was gathered that the tribunal initially granted an ex parte motion that directed the parties to maintain the status quo ante bellum, but the company allegedly increased its prices on DStv and Gotv subscriptions.
MultiChoice’s lawyer, Mr. Jamiu Agoro, challenged the jurisdiction of the tribunal to entertain the matter.
He urged the tribunal to set aside its interlocutory order, arguing that the claimants lacked the locus standi to institute the action.
But the tribunal dismissed the matter for want of merit, despite affirming its jurisdiction on the matter.
It averred that “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 that the claimants could not prove how they suffered psychological trauma, hardship or how their rights were trampled upon by the price hike.
The panel declared that prayers one, two and three of the claimants were not grantable as the power to regulate prices of goods and services only resides in the President.
It also said prayers four and five of the claimants lacked merit.
The panel ordered the management of MultiChoice to appear before it tomorrow (September 8) with their 2021 audited financial statements.