The Nigerian Competition and Consumer Protection Tribunal has granted the request to withdraw the case against MultiChoice Nigeria concerning a price hike in GOTV and DSTV subscriptions.
This follows the sudden decision of the lawyer who filed the case, Festus Onifade to withdraw his case against the pay TV provider.
Onifade stated that he no longer intends to proceed with the matter, insisting that MultiChoice would leverage the vacation to argue its appeal at the Court of Appeal and frustrate his case.
“I am abandoning this matter. I am withdrawing this case,” he said, explaining he filed the suit to challenge the alleged oppressive attitude of multinationals toward Nigerian consumers.
The Federal Competition and Consumer Protection Commission (FCCPC) lawyer told the tribunal to allow the claimant to withdraw his matter.
Onifade then orally applied to withdraw the suit.
MultiChoice’s lawyer, Moyosore Onigbanjo (SAN) stated he had no objection to the claimant’s request to withdraw.
“The oral application of the claimant to withdraw this suit is hereby granted. No cost is awarded,” the tribunal ruled.
Initially, Onifade had appeared to be on course for a landmark victory for consumers after the tribunal had fined MultiChoice N150 million and mandated a one-month free subscription to customers for violating interim orders, but MultiChoice appealed and filed for a stay of proceedings.
The tribunal had restrained MultiChoice from increasing its subscription rates pending the hearing and determination of a motion on notice filed by Onifade.
A three-member tribunal chaired by Saratu Shafii had ruled in favor of Onifade by temporarily restraining MultiChoice from implementing the impending price increase scheduled to take effect on May 1, 2024, pending the hearing and determination of the motion on notice.
However, MultiChoice’s lawyer, Moyosore J. Onigbanjo (SAN), filed a preliminary objection urging the court to decline jurisdiction over the suit filed by Festus Onifade and to strike it out, arguing that a similar price dispute case had previously been decided in favor of his client.
Onifade argued that the issue before the court was whether MultiChoice Nigeria provided adequate notice regarding the May 1, 2024, TV subscription price increase, not about price regulation or increase.
In its ruling, the three-member panel chaired by Justice Thomas Okosu dismissed MultiChoice’s preliminary objection for disobeying its interim orders and subsequently imposed a 150 million naira administrative penalty on MultiChoice, along with a one-month subscription order against the Pay TV provider.
MultiChoice has filed an appeal against the ruling, arguing that the tribunal erred in its decision.
The company also filed counter-affidavits dated July 12, 2024, providing reasons for its price hike and requesting that the tribunal dismiss the case.
In its affidavits, deposed by Damilola Olatunji, MultiChoice explained that to mitigate the impact of the weakening exchange rate in Nigeria, it was constrained to increase its subscription prices, though it did so to the least affordable extent possible.
The company insisted that it duly notified its customers and regulatory authorities before the increment was effected.
It was stated that the defendant had already filed a notice of appeal dated June 7, 2024, and an application for a stay of execution of the tribunal’s orders made on June 7, 2024, along with a request for all further proceedings before the tribunal to be stayed pending the determination of the appeal.
Onifade urged the court to determine his case in the interest of justice.