MultiChoice Gets Interim Victory In Subscription Price Hike Dispute

In a significant legal development, the Competition and Consumer Protection Tribunal (CCPT) has granted the dismissal of a subscription price hike case instituted against MultiChoice Nigeria.

Naija News reports that the tribunal, comprising three members and led by Thomas Okosu, issued the interim order following an oral application by Festus Onifade, the claimant, to withdraw his case against the media giant.

The case, which had attracted substantial public interest, began on April 29 when the tribunal initially halted MultiChoice from implementing its planned increase in tariffs and cost of services, which was slated to commence on May 1.

This intervention was seen as a victory for consumers who were concerned about the rising costs of subscription services.

However, MultiChoice Nigeria, dissatisfied with the ruling, announced its intention to appeal the decision and was subsequently fined N150 million for challenging the tribunal’s jurisdiction.

The company’s legal representative, Moyosore Onibanjo, requested an adjournment of the matter until the Court of Appeal decided on their applications.

During Monday’s ruling, Onibanjo contended that legal protocol necessitates the tribunal to allow the Court of Appeal to decide on the application before proceeding.

He argued that the tribunal should not continue its deliberations while an appeal is pending.

Conversely, Festus Onifade, the claimant, opposed the indefinite adjournment sought by MultiChoice.

Onifade insisted that the tribunal had already decided on the matter and that MultiChoice should have first sought a stay of proceedings from the tribunal before appealing to a higher court.

He emphasized that only after the refusal of a stay by the tribunal could an applicant approach a higher court, which must then make a definitive ruling before the lower court’s proceedings could be stayed.

I.O. Alaba, representing the Federal Competition & Consumer Protection Commission (FCCPC), called on the tribunal to exercise its discretion judiciously, taking into account the arguments from both parties.

In his ruling, Okosu acknowledged MultiChoice’s right to appeal but stressed that the company had not followed the necessary legal procedures.

He noted that the legal team had not demonstrated any special circumstances preventing them from seeking the tribunal’s leave to suspend the proceedings.

“Whereas we agree that MultiChoice has the right to appeal on a matter before this tribunal, the proper procedures must be followed,” Okosu stated.

“We have reviewed the positions of Order 6, Rule 4 of the Court of Appeal Rules and did not see or find any circumstances that prevented MultiChoice from filing a stay of proceedings and execution before this tribunal.”

With these observations, the tribunal decided that there was nothing to stay and thus, it would proceed to hear and determine the matter.

Okosu reiterated that the tribunal could not contravene its own rules on vacation and thus granted the claimant’s oral application to withdraw the suit. No costs were awarded in the dismissal of the case.

The tribunal subsequently adjourned the case to November, marking a temporary reprieve for MultiChoice Nigeria.