The suit challenging the right of MultiChoice, owners of DStv and GOtv — popular subscription-based platforms in Nigeria to increase subscription fees for its services has been dismissed by the Competition and Consumer Protection (CCP) tribunal sitting in Abuja.
Festus Onifade, a legal practitioner, had sued the company on behalf of himself and the coalition of Nigerian consumers.
Onifade asked the tribunal to restrain the firm from hiking subscription fees for its services and other products on April 1, pending the hearing and determination of the motion on notice dated and filed on March 29.
However, the price increase has since taken effect.
Onifade said he had lodged a petition at the FCCPC in May and June 2020 when MultiChoice planned an increase on its tariff in the same year.
He said recycled content and pay-as-you-use were also raised apart from tariff hikes.
The legal practitioner said he approached the tribunal after the FCCPC failed to take action on the petition.
Delivering judgement on Tuesday, the three-member panel of the tribunal led by Thomas Okosun held that “the price increase is valid” and therefore dismissed the suit for lacking merit.
The tribunal held that the claimant failed to establish that MultiChoice abused its dominant position in the market.
It also held that only the president has the power to regulate or fix the prices of goods and services.
“Only the president has the powers to regulate or fix prices of goods and services under stipulated circumstances which do not apply in this instance,” it held.
Furthermore, the tribunal said the claimants failed to show evidence or establish how they suffered “psychological trauma, hardship or violation of their human rights” as a result of the price hike.
“He failed to show evidence of hardship suffered by consumers,” it added.
The tribunal also ruled that the 1st defendant (MultiChoice) cannot be punished because the 2nd defendant (FCCPC) did not inform or invite them to defend the petition.