MultiChoice prevails as Nigerian tribunal approves lawyer’s request to withdraw GOTV and DSTV price hike case

MultiChoice prevails as Nigerian tribunal approves lawyer’s request to withdraw GOTV and DSTV price hike case

The Competition and Consumer Protection Tribunal (CCPT) has approved the withdrawal of a case against MultiChoice Nigeria concerning a subscription price hike.

The decision was delivered on Monday by a three-member tribunal led by Thomas Okosu, following Barrister Festus Onifade’s oral request to withdraw his case against the Pay TV provider.

Previously, Nairametrics reported that the tribunal, chaired by Okosu, fined MultiChoice 150 million naira and mandated one month of free subscription for violating interim orders that restrained DSTV and GOTV price increases.

Case Background
The tribunal had previously barred MultiChoice from raising its subscription rates pending the hearing and determination of a motion filed by Barrister Festus Onifade. Onifade had sued MultiChoice Nigeria Ltd and the Federal Competition and Consumer Protection Commission (FCCPC) over the price hike.

A three-member tribunal chaired by Saratu Shafii temporarily restrained MultiChoice from implementing the planned price increase, set for May 1, 2024, until the motion was heard and decided.

MultiChoice’s lawyer, Moyosore J. Onibanjo (SAN), filed a preliminary objection, urging the court to dismiss Onifade’s suit, arguing that a similar case had previously been ruled in favor of his client.

Onifade contended that the case was about whether MultiChoice Nigeria provided adequate notice of the May 1, 2024, price increase, rather than about price regulation or increases.

The three-member panel, chaired by Justice Thomas Okosu, dismissed MultiChoice’s preliminary objection for disobeying interim orders and imposed a 150 million naira administrative penalty on MultiChoice, along with a one-month free subscription order.

MultiChoice has appealed the ruling, arguing that the tribunal made an error in its decision. The company filed counter-affidavits on July 12, 2024, justifying the price hike due to the weakening exchange rate in Nigeria and stating that it had provided proper notice to customers and regulatory authorities.

The defendant had already filed a notice of appeal on June 7, 2024, along with an application for a stay of execution of the tribunal’s orders, requesting that further proceedings be paused pending the appeal’s outcome.

Onifade urged the court to decide his case in the interest of justice.

Court Proceedings
During the resumed hearing on Monday, Onibanjo requested the tribunal to adjourn the case until the Court of Appeal ruled on his applications, arguing that the tribunal should wait for the Court of Appeal’s decision.

He referenced Order 6, Rule 4 of the Court of Appeal Rules, which allows a party to apply directly to the Appeal Court for determination under special circumstances.

Onibanjo emphasized that the tribunal should adhere to legal authorities and wait for the Court of Appeal’s decision.

Onifade countered that the adjournment request by MultiChoice had already been addressed on July 3, 2024, and the tribunal had ruled on it, setting July 29 for the hearing. He argued that the issue of indefinite adjournment could not be reopened by MultiChoice.

He also stated that a stay of proceedings must first be filed in the court that granted the decision, and only upon its refusal could the applicant approach a higher court.

FCCPC lawyer I.O. Alaba urged the tribunal to exercise its discretion based on both parties’ arguments.

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