The Competition and Consumer Protection Tribunal has granted the withdrawal of a case challenging a subscription price increase by MultiChoice Nigeria.
The decision was made on Monday by a three-member panel led by Thomas Okosu, following an oral application from Barrister Festus Onifade to withdraw his case against the Pay TV provider.
Earlier, the tribunal had imposed a 150 million naira fine on MultiChoice and mandated one month of free subscription for flouting interim orders that prohibited price hikes for DSTV and GOTV.
This ruling came after Onifade filed a motion arguing that MultiChoice had failed to provide adequate notice regarding a planned price increase set for May 1, 2024.
Onifade’s case was initially supported by a ruling from a tribunal chaired by Saratu Shafii, which temporarily restrained MultiChoice from implementing the price increase until the case was fully heard. MultiChoice’s lawyer, Moyosore J. Onibanjo (SAN), had contested the tribunal’s jurisdiction, arguing that similar disputes had been previously resolved in favor of his client.
The tribunal, however, dismissed MultiChoice’s preliminary objection and imposed penalties for not adhering to its interim orders. MultiChoice appealed this decision, arguing procedural errors and seeking a stay of the tribunal’s orders.
On Monday, as the tribunal resumed hearings, Onibanjo requested an adjournment until the Court of Appeal made a decision on the appeal. However, Onifade opposed this, urging the tribunal to proceed. Tribunal Chair Thomas Okosu ruled that the tribunal would continue with the matter as the appeal did not automatically stay proceedings.
Amid discussions over scheduling and procedural matters, Onifade announced his decision to withdraw the case. He cited concerns that the ongoing legal process might allow MultiChoice to leverage the tribunal’s vacation period to delay proceedings. The tribunal granted Onifade’s request to withdraw the case, with no costs awarded.
The price increase issue arose after MultiChoice announced adjustments to DSTV and GOtv packages in April 2024, citing rising operational costs. Despite the legal proceedings, MultiChoice proceeded with the price hike, which saw an increase of 25% to 26% across its packages.
The Federal Competition and Consumer Protection Commission stated it would review the reasons for the price adjustment and consider involving regulatory bodies such as the National Broadcasting Commission.
The price increase, combined with Nigeria’s economic challenges, has reportedly led to an 18% decline in active DSTV subscribers in the country.
