MultiChoice Nigeria has attributed the recent price hikes for DSTV and GOTV to the depreciation of the naira, rising taxes, and other economic factors.
This led to a legal dispute, resulting in a tribunal ruling that fined MultiChoice and mandated a free one-month subscription for customers due to non-compliance with interim orders.
MultiChoice appealed the ruling, citing increased operational costs and economic challenges, and stated that they duly notified customers and regulatory authorities before the price increase.
In its counter affidavits before the Competition and Consumer Protection Tribunal, MultiChoice Nigeria argued that the price hikes were necessary due to the fallen value of the naira and increasing taxes. The legal team emphasized that the company had notified customers a month in advance.
Nairametrics reported that a three-man panel of the tribunal, led by Thomas Okosu, fined MultiChoice 150 million naira and ordered one month of free subscription for customers, citing non-compliance with interim orders.
During the resumed hearing, Onifade questioned the tribunal’s decision to allow MultiChoice’s numerous applications, arguing that the tribunal’s primary objective is to protect consumers. Tribunal chair Thomas Okosu restrained Onifade from continuing this line of argument, emphasizing the rights of both parties. Onifade and the legal team of the FCCPC then requested more time to respond to the counter-affidavits, and the tribunal adjourned the hearing to July 29, 2024.
MultiChoice announced the price adjustments on April 24, 2024, informing subscribers that the new prices would take effect from May 1, 2024. The company cited rising business operation costs as the reason for the increase, which ranged from 25% to 26% across packages.
The commission indicated that it would review MultiChoice’s reasons for the price hike and might involve regulatory bodies like the National Broadcasting Commission (NBC). The economic conditions in Nigeria have impacted MultiChoice’s subscriber base, with active DStv subscribers in the country declining by 18%.