Multichoice Nigeria is seeking to quash the tribunal’s jurisdiction in the price hike dispute.
In a drastic move to counter the recent ruling, Multichoice Nigeria has filed a challenge against the Competition and Consumer Protection Tribunal (CCPT) in Abuja, disputing the tribunal’s authority to halt the planned price increase for its DStv and GOtv packages.
NewsOnline Nigeria understands that the tribunal had earlier issued a restraining order, temporarily blocking the price hike, but Multichoice Nigeria is now seeking to quash the tribunal’s jurisdiction in the matter.
Multichoice’s lawyer, M.J. Onibanjo (SAN) told the CCPT via his application on Tuesday that it should decline jurisdiction on the suit filed by Festus Onifade because such a price dispute case had been decided before in favor of his client.
In his motion on notice seen by Nairametrics, Onibanjo argued that while Onifade is seeking to regulate prices of the services provided by Multichoice, the Tribunal, not being the President of the Federal Republic of Nigeria lacks the jurisdiction to regulate prices of goods and services under the FCCPA 2018.
The senior lawyer maintained that the planned increase announced by Multichoice on 24th April 2024 is a completed act because all its systems have been so configured.
“An order of this honorable tribunal striking out suit no: CCPT/OP/2/2024 between Festus Onifade and Multichoice Nigeria for want of jurisdiction.
“An order staying the execution and enforcement of the instant interim orders of this honorable tribunal granted on 29th, April, 2024,” Onibanjo prayed in his motion.
NewsOnline Nigeria previously reported that the tribunal had restrained MultiChoice from increasing its subscription rates pending the hearing and determination of a motion on notice filed by Festus Onifade through his lawyer, Ejiro Awaritoma.
Onifade, who sued Multi-Choice Nigeria Ltd, and the Federal Competition and Consumer Protection Commission (FCCPC), accused the former of unjustly increasing subscription fees.
He had sought interim orders against the Pay TV.
Last Monday, a three-member tribunal chaired by Saratu Shafii, ruled in favor of Onifade by restraining Multichoice in the interim, in the suit marked CCPT/OP/2/2024.
The court held that “the 1st Defendant(Multichoice) is hereby restrained, whether by themselves, her privies, assigns by whatsoever name called, from going ahead with impending price increase schedule to take effect from 1st May 2024 pending the hearing and determination of the Motion on Notice already filed before this Honourable Tribunal.”
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On his part, Onifade filed a counter affidavit maintaining that the present matter does not seek to regulate prices of goods and services of Multichoice as claimed.
“The matter FESTUS SANMI ONIFADE & 1 ORS VS. MULTI- CHOICE NIGERIA LIMITED & 1 ORS previously decided by this honourable Tribunal and the present suit are not the-same both in parties and subject-matter,” he added.
Via his fresh motion seen by Nairametrics, he asked the Tribunal to direct Multi-choice Nigeria Limited to pay the sum of N1,000,000,000.00 (One Billion Naira only) or any amount the Tribunal deem may fit appropriate in this circumstance for “deliberately disobeying, contravening, and failure to comply with the Interim Order of this Honourable Tribunal granted on the 29th April 2024.”
Onifade contended that despite the subsisting order of the court, Multichoice neglected it by wilfully increasing the tariffs of her products and services on May 1st, 2024.
Moreover, before the Tribunal, Onifade filed Form 48- a notice which seeks to commit a party to prison for alleged disobedience to court orders.
The notice was filed against Mohammed Sageer Sani, the Abuja manager of Multi-Choice Nigeria Limited, adding, “You will be guilty of contempt of this Tribunal and will be committed to prison.”
Details of the court proceedings today:
At the resumed sitting, Onibanjo urged the court to determine his motion challenging the jurisdiction of the tribunal to make the orders it made and to entertain the claimant’s suit.
On the part of N. Adeke, counsel for the FCCPC, he acknowledged receiving the motion on notice filed by the claimant as well as the memorandum of conditional appearance and motion of Multichoice.
“The commission intends to respond to the motion on notice filed by the defendant.
“We ask for a short date to respond to the motion,” Adeke prayed.
On the calls for an adjournment, Onifade said he is not opposed to an adjournment, however, he will be asking the matter be adjourned for full-blown hearing.
But the three-man panel chaired by Justice Thomas Okosu adjourned the suit to May 16 to enable all parties to file necessary applications.
Recall that Multichoice announced new price adjustments on DStv and GOtv packages on Wednesday, April 24, 2024.
The email message to subscribers read, “On Wednesday, 1 May 2024 we will adjust our prices across all our packages on OStv and GOtv. We understand the impact this change may have on you – our valued customer, but the rise in the cost of business operations, has led us to make this difficult decision. It remains our mission to provide the best entertainment and viewing experience to you and are committed to continue to deliver high-quality content and unparalleled service.”
The development resulted in a 25% to 26% increase across Multichoice packages.
But amid the subsisting ruling, the popular Pay TV provider proceeded with the upward adjustment of its prices for DStv and GOtv subscribers,
On the part of the commission, it said it would review the reasons identified by Multichoice, noting that the agency could involve regulatory bodies such as the National Broadcasting Commission (NBC) and the Nigerian Communications Commission (NCC) in the process.
