The Competition and Consumer Protection Tribunal (CCPC) sitting in Abuja Nigeria, says, the tariff increase by MultiChoice, the operators of Gotv and DStv was legal and just, adding that only the President of Nigeria has powers to regulate prices in certain circumstances.
The tribunal, on Tuesday held that the power to regulate prices of goods and products could not therefore be delved into by the Protection Commission, which is the second respondents at the tribunal.
The tribunal, however, ordered MultiChoice to go and investigate the operations of pay-as-you-view subscription and report back to the tribunal within six months.
Basis for suing
An Abuja based Legal practitioner, Mr Festus Onifade, and Coalition of Nigeria Consumers, had sued MultiChoice and the Federal Competition and Consumer Protection Commission (FCCPC) as 1st and 2nd respondents, shortly after the company on March 22, announced its plan to increase prices of its products from April 1, 2022.
The claimants have filed a suit against MultiChoice, the operator of Gotv and DStv, over the planned price increment on their products and subscription rate.
They had prayed the tribunal for an order, restraining the firm from increasing its services and other products on April 1, pending the hearing and determination of the motion on notice dated and filed on March 30, and the tribunal granted the ex-parte motion, directing parties to maintain status quo ante bellum.
However, despite the tribunal’s order, the company was alleged to have gone ahead with the price increase on DStv and Gotv subscriptions.
On April 11, the tribunal again ordered MultiChoice to revert back to the old prices by maintaining status quo of its March 30 order, pending the hearing and determination of the substantive matter.
But counsel to MultiChoice, Jamiu Agoro, in a motion in notice challenged the jurisdiction of the tribunal to hear the matter.
The tribunal had, on June 20, granted Onifade’s reliefs in an application seeking for a leave to amend his earlier originating summons.
Damages
The lawyer, in another originating summons, is suing the firm, the operators of DStv and Gotv, for N10 million damages.
Onifade, in the amended originating summons dated June 17 but filed June 20, also sought the order of the tribunal directing and mandating MultiChoice to adopt a pay-as-you-view model of billing for all its products and services forthwith.
In the judgement delivered on Tuesday and presided over by Thomas Okosun, MultiChoice was ordered to provide its audited financial statement report of 2021 to the tribunal by September 8 to ascertain the financial status of the company. This was to enable it determine the fine to impose for disobedience to the tribunal’s order of March 30, which directed parties to maintain the status quo, pending the determination of the whole suit.
The tribunal also held in its Tuesday judgment that the conduct of the 1st defendant did not amount to market dominance as Nigeria is a free market economy.
The tribunal further added that the claimant could prove a case of exploitation in line with the relevant laws, consequently throwing out his request of compensation.
Emmanuel Ukoh
