Lagos, Nigeria – MultiChoice Nigeria, the company behind popular pay-TV services DStv and GOtv, is currently embroiled in legal challenges following a court ruling against its subscription rate increase. The Competition and Consumer Protection Tribunal in Abuja recently fined the company N150 million for disobeying an order to halt its planned price hike.
Background on the Price Hike
The controversy began when MultiChoice announced an increase in its monthly subscription rates. The company gave an eight-day notice before implementing the new prices, a move that prompted Abuja-based lawyer Festus Onifade to file a suit against the pay-TV giant. Onifade argued that the notice period was inadequate and sought a court order to stop the price hike until the case was resolved.
Tribunal’s Ruling and MultiChoice’s Response
On June 7, the Tribunal ruled in favor of Onifade, mandating MultiChoice to freeze the price increase. Additionally, the Tribunal fined MultiChoice N150 million for contempt of court, as the company had proceeded with the price hike despite the initial order. The Tribunal also ordered MultiChoice to provide its Nigerian customers with a one-month free subscription to both DStv and GOtv packages.
MultiChoice responded to the ruling by expressing its intention to appeal. The company stated, “MultiChoice Nigeria is aware of the recent ruling by the Competition and Consumer Protection Tribunal regarding its jurisdiction to entertain a price regulation matter. As the matter is currently sub-judice, we are restrained from making further comments. We disagree with the ruling, and will therefore file an appeal against the said ruling.”
Conflicting Reports on Price Adjustments
Amid the legal battle, reports emerged claiming that MultiChoice had adjusted its prices following the court order. According to these reports, the DStv Premium package was reduced from N37,000 to N29,500, and the Compact+ package from N25,000 to N19,800. These changes were allegedly reflected on the DStv and GOtv mobile applications and the company’s self-service website.
However, MultiChoice has not officially confirmed these adjustments, maintaining silence on whether it has complied with the Tribunal’s directive.
Looking Ahead
The situation remains dynamic as MultiChoice prepares to challenge the Tribunal’s ruling. The outcome of the appeal could set a significant precedent for consumer protection and corporate compliance in Nigeria. For now, DStv and GOtv subscribers are advised to stay tuned for further updates on the pricing and legal developments.
The ongoing dispute highlights the tension between regulatory authorities and service providers over pricing practices and consumer rights. As MultiChoice navigates this legal maze, its customers are left waiting to see how these developments will impact their viewing experience and subscription costs.
