A Competition and Consumer Protection Tribunal (CCPT) in Nigeria has imposed a fine of N150 million on Multichoice Nigeria for challenging its jurisdiction.
The tribunal also ordered the company to provide a one-month free subscription on DStv and GOtv for Nigerians.
The ruling comes after Multichoice Nigeria announced a price increase in April, which the tribunal halted on April 29.
In response, Multichoice Nigeria, represented by lawyer Moyosore Onibanjo, filed an application on April 30 challenging the tribunal’s authority to issue the price restraining order.
The three-man panel, led by Thomas Okosu, ruled that the tribunal has jurisdiction over all commercial activities in Nigeria as per section 39(2) of the Federal Competition and Consumer Protection Commission (FCCPC) Act.
Okosu found no requirement for aggrieved consumers to file complaints with the Nigerian president or the price control board to enforce their rights.
The tribunal determined that it had the authority to handle consumer rights cases and rejected Multichoice’s jurisdictional challenge.
The tribunal clarified that the claimant’s suit was not questioning the price increase itself, but the illegality of Multichoice’s short eight-day notice to customers.
The tribunal condemned Multichoice for violating interim orders and deemed the price hike unacceptable. Multichoice’s preliminary objection was dismissed for disobeying these orders.
As a result, the tribunal imposed a N150 million penalty on Multichoice and ordered the company to provide one month of free subscriptions to Nigerians.