In a significant development, the Competition and Consumer Protection Tribunal (CCPT) has granted an interim order restraining Multichoice Nigeria Limited from implementing its recently announced price hike for DSTV and GOTV subscriptions. The order was issued by a three-member panel of the tribunal, presided over by Saratu Shafii, on Monday, following an ex-parte motion filed by Ejiro Awaritoma, counsel to the applicant, Festus Onifade.
The price hike, which was announced by Multichoice last week, would have seen subscription fees for DSTV and GOTV packages increase by up to 26%, effective May 1, 2024. The company had cited the rising cost of production in the country as the reason for the increase, which would have affected both new and existing subscribers.
However, in his motion, Onifade argued that the price hike would negatively affect the rights of consumers and sought an interim injunction to restrain Multichoice from implementing the increase pending the hearing and determination of the motion on notice. He also sought an order restraining the company from taking any steps that may negatively affect the rights of consumers in respect of the suit.
The tribunal granted the interim order, directing Multichoice to maintain the status quo and restraining it from taking any steps that may negatively affect the rights of consumers. The order reads: “The 1st defendant is hereby restrained from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the motion on notice.”
The tribunal also directed all parties to appear before it on May 7, 2024, for the hearing and determination of the motion on notice. The outcome of the hearing will determine whether the price hike will be allowed to go ahead or not.
This development is a temporary relief for Nigerian consumers who would have been affected by the price hike. The CCPT’s decision is a significant step in protecting the rights of consumers and promoting fair competition in the market.