Tribunal dismisses subscriber lawsuit against MultiChoice tariff hikes

The Competition and Consumer Protection Tribunal (CCPT) in Abuja has struck out a class action suit brought against MultiChoice Nigeria and the Federal Competition and Consumer Protection Commission (FCCPC) and ruling that it lacked jurisdiction.

The suit, filed by Uche Diala and 961 other DStv and GOtv subscribers, has challenged MultiChoice’s subscription price increases in November 2023 and May 2024, which were described as arbitrary, exploitative, and unfair.

MultiChoice, represented by its legal counsel, raised a preliminary objection which argued that pricing decisions fall outside the tribunal’s remit. The firm argued that the suit was improperly instituted as a class action without first obtaining the tribunal’s leave.

Read also: MultiChoice slashes DStv decoder prices by 50% after losing 1.4m subscribers

Delivering the ruling on Thursday, the three-member panel led by Justice Thomas Okosun held that the issues raised in the suit, namely, pricing and tariff regulation, which are within the exclusive powers of the executive branch, as set out in the Price Control Act.

“The issue of price regulation is a matter that falls within the exclusive purview of the President of the Federal Republic of Nigeria,” Okosun said.

While the tribunal acknowledged it holds both original and appellate jurisdiction under the FCCPC Act, it noted that such authority does not extend to general price control, unless there is proof of abuse of market dominance, which the claimants failed to establish.

This ruling comes on the heels of a similar decision delivered by the Federal High Court in Abuja on May 8. In that case, Justice James Omotoso upheld MultiChoice’s price adjustments after the company challenged the FCCPC’s attempt to regulate its subscription rates. The court declared that the FCCPC lacked the legal authority to fix or suspend pay-TV tariffs.

Read also: MultiChoice Nigeria’s subscription revenue drops 44% to $197m as customer base shrink

On the procedural issue, the tribunal observed that although it is ideal to obtain leave before instituting a class action, the failure to do so was not fatal in this case, given the shared grievance and common interest among the claimants. However, it ultimately upheld MultiChoice’s objection.

“The preliminary objection of the first defendant succeeds. This suit is accordingly struck out for want of jurisdiction,” the panel ruled.