12 September 2018

Nigeria: DStv Tariff Hike - Again, Court Rules Against Multichoice

A judge, Nnamdi Dimgba, in Abuja has rejected an appeal by Multichoice Nigeria against an interim order prohibiting any increase in its DStv or GOtv subscription rates.

Multichoice Nigeria had on August 24 filed an appeal against the order of the Federal High Court, Abuja stopping it from increasing the subscription rates to its cable television services. The order was given on August 20.

The restraining order was issued in respect of Suit No FHC/ABJ/CS/894/18 brought before the court by the Consumer Protection Council (CPC) in the light of the public outcry raised.

In his order, Mr Dimgba said the interim injunction restrains Multichoice Nigeria or its agents and representatives from "continuing the implementation of any increase in subscription rates or price review policy imposing increased charges and costs on the consumers pending the determination of the motion on notice."

Besides, the court also restrained DSTV from "further carrying on or continuing any conduct or activity which interferes with or has effect of circumventing the outcome of ongoing investigations by the CPC into the company's compliance or non-compliance with the February 16, 2016 order pending the determination of the motion on notice".

When the appeal was made, the CPC explained that the order stopping implementation of the new tariffs will subsist till the appeal has been heard and ruling given by the court.

This means that the subscription tariffs for Dstv and Gotv ought not to have increased but consumers have been paying the increased tariffs since August.

Under the new price regime, the company said the Premium package subscribers pay about 7.5 per cent more (about N15,800) from about N14,700 every month.

Also, their Compact Plus customers still pay N10,650, from N9,900; Compact bouquets, N6,800, from N6,300, while the family package was increased from N3,800 to N4,000, with Access from N1,900 to N2,000

On Monday, during the court hearing, the judge also refused the application by MultiChoice to adjourn the matter indefinitely.

When asked of the measures taken to ensure Multichoice's compliance, CPC Director General Babatunde Irukera said CPC still holds the position that consumers should be paying the old tariff.

"However, the council's understanding is that Multichoice is not complying with that order of court so that's why it was important for the court to agree to clarify the situation," he said.

Nigeria

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