According to the tribunal, only the President has the authority to set pricing for products and services
The Competition and Consumer Protection (CCPC) Tribunal in Abuja has dismissed a claim brought against MultiChoice, the operator of DStv and GOtv, over recent price hikes on their products and subscription fees.
SaharaReporters reported in April that the Oodua Youth Coalition (OYC) threatened to picket the office of the pay TV company, Multichoice Nigeria on Victoria Island in Lagos.
The group described the move as its response to the agitations of the Nigerian public regarding the recent increment of tariffs on DStv and GOtv, paid direct broadcast satellite service and terrestrial service respectively.
Meanwhile, the three-member panel, led by Thomas Okosun, ruled on Tuesday that the Federal Competition and Consumer Protection Commission (FCCPC), the regulatory agency, does not have the authority to regulate the prices of products and services.
According to the tribunal, only the President has the authority to set pricing for products and services, NAN reports.
The panel, which ruled that the claimants had failed to prove that MultiChoice had abused its market dominance, stated that the case lacked validity because Nigeria is a free market economy.
The panel also denied the claimants' request that the firm should adopt a pay-as-you-view invoicing model for all of its products and services. It, however, ordered the FCCPC to investigate whether the company uses a pay-per-view model for its products and services in other countries, particularly South Africa, and to report back to the court within six months.
FCCPC had sued the company and FCCPC as first and second respondents shortly after the company, on March 22, announced its plan to increase the price of its products from April 1.
They had appealed to the tribunal for an order restraining the firm from increasing its services and other products on April 1, pending the hearing and determination of the motion on notice dated and filed on March 30.
The tribunal granted the ex-parte motion, directing parties to maintain the status quo ante bellum.
But despite the tribunal’s order, the company was alleged to have gone ahead with the price increase on DStv and GOtv subscriptions and other products.
The claimant, however, raised the issue of contempt, accusing MultiChoice of disobeying the tribunal order of March, which restrained them from going ahead with the price increase.
On April 11, after the arguments by counsel for the parties, the tribunal again ordered MultiChoice to revert to the old prices by maintaining the status quo of its March 30 order, pending the hearing and determination of the substantive matter.
Mr Onifade, in an amended originating summons granted by the tribunal on June 20, also sued the firm for N10 million in damages.
But in a motion on notice, counsel for MultiChoice, Jamiu Agoro, challenged the tribunal’s jurisdiction to hear the matter as the claimant lacked the locus to institute the action.
Mr Jamiu had argued that the order of the tribunal made on April 11, asking MultiChoice to revert to old rates, was made against an action already taken, saying the firm already increased its tariffs on April 1.