Multichoice Takes Important Step After Adjusting Price of DSTV, GOTV

Multichoice Takes Important Step After Adjusting Price of DSTV, GOTV

  • The CCPT's decision on a N150 million fine and a free monthly membership order was challenged by Multichoice Nigeria
  • Multichoice alleged that the tribunal penalised it without providing its legal representative with a chance to defend the price hike
  • Multichoice emphasised that the tribunal had already decided on its price hike, prohibiting its panel from overseeing the same issues

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The Competition and Consumer Protection Tribunal's (CCPT) decision to impose a N150 million fine and a "free monthly subscription order" on Multichoice Nigeria has been appealed.

Multichoice takes important step
Multichoice accused the tribunal o not providing its legal representative with a chance to defend the price hike. Photo Credit: DSTV, Carlos Barquero Perez
Source: Getty Images

In an appeal filed with the Court of Appeal in Abuja, the Pay TV provider presented further arguments for why the appellate court ought to overturn the CCPT verdict.

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This was stated in MultiChoice's notice of appeal, in which the company requested that the Court of Appeal rule that the tribunal "erred in law."

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Multichoice arguments against tribunal

In a Leadership report, Multichoice claimed that the tribunal fined it without allowing its legal counsel to defend the price increase.

Pay TV maintained that the tribunal should not have handled the complaint since the Federal Competition & Consumer Protection Council had not yet decided on it.

It emphasised that the tribunal had already decided on its price hike, prohibiting its panel from overseeing the same issues in purported violation of the law.

Multichoice emphasised that the attorney did not request a fine of N150 million or a complimentary one-month subscription in opposition to it. Additionally, it was believed that the tribunal took these actions without consulting all of its subscribers.

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The firm also emphasized that, by taking advantage of a lawyer's personal problems with his subscription package, the tribunal wrongly fined it a significant amount.

Multichoice insists tribunal not disobeyed

Multichoice reaffirmed to the Court of Appeal that when a party files an application contesting the court's authority to oversee an issue, it cannot be considered that the party has disregarded an order of the court.

Multichoice appealed for: “An order setting aside the ruling and Orders of the Hon. Tribunal delivered on the 7th June 2024.”

The CCPT has said it  would review the reasons identified by Multichoice, noting that the agency could involve regulatory bodies such as the National Broadcasting Commission (NBC).

This comes after Legit.ng reported that MultiChoice, owners of DStv and GOtv, may have reverted to the old subscription prices following a court order mandating that the pay television company halt its move to hike prices.

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Legit.ng checks on the firm's apps on Sunday, June 16, 2024, showed that the company had reverted to the old prices. This came after subscribers paid the new rates for May 2024 following the hike.

MultiChoice suffers revenue decline

Legit.ng reported that MultiChoice Group, the parent company of MultiChoice Nigeria, revealed a 30.77% decrease in subscriber income from Nigeria for the entire fiscal year ending in March 2024.

Income reportedly dropped from $493.59 in the previous year to $341.72 million despite the two increases in membership costs.

The corporation cited a number of reasons for this decline, including rising fuel prices, record-high inflation of more than 33%, and naira depreciation.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng