Nigeria: Subscription Rates - Tribunal Okays Lawyers Move to Amend N10 Million Suit Against DStv, Gotv

They are praying the tribunal for an order, restraining MultiChoice from increasing the subscription rates for its DSTV and GOTV television services and other products.

A Competition and Consumer Protection (CCPC) Tribunal in Abuja, on Monday, approved a request by a lawyer to amend and refile his N10 million suit challenging MultiChoice Nigeria Limited for increasing the subscription fees for its television services.

The lawyer, Festus Onifade, and the Coalition of Nigeria Consumers jointly sued MultiChoice - operators of DSTV and GOTV in Nigeria and Federal Competition and Consumer Protection Commission (FCCPC).

They are praying the tribunal for an order, restraining MultiChoice from increasing the subscription rates for its services and other products.

The company had set an April 1 date to commence the new price regime.

But the plaintiff had urged the court to stop the price hike pending the hearing and determination of the motion on notice dated and filed on March 30.

The tribunal granted the ex-parte motion directing parties to maintain status quo pending the determination of the whole suit.

The claimant, Mr Onifade, seeks substantively the order of the tribunal directing MultiChoice to adopt to a pay-as-you-view model of billing for all its products and services immediately.

At Monday's proceedings, a three-member tribunal headed by Thomas Okosun granted Mr Onifade's prayers in an application seeking leave to amend his initial court filings.

Subsequently, the tribunal ordered MultiChoice's lawyer, Jamiu Agoro, to file their responses to the new application within 21 days.

The suit was adjourned until July 21 for hearing.

Arguments

During the court session on Monday, Mr Onifade said due to minor irregularities in his earlier application of on June 7, he decided to file another request dated June 17 to replace the previous one.

He further said that though the FCCPC had been served with the new filings, MultiChoice's lawyer declined to receive the fresh application, prompting the tribunal chairman to direct Mr Agoro to collect the court documents.

After accepting service, Mr Agoro asked for a cost having joined issues with the claimant in the earlier application he sought to substitute, and the tribunal awarded a N20, 000 cost against the claimants.

He then opposed he claimants' application to amend their suit on the grounds that the request was coming after he filed a written address on June 17 to challenge the suit.

"We adopt the arguments contain in this written address in urging this honourable tribunal to dismiss the instant application as same lacks merit," Mr Agoro said.

He described the application as "overreaching," adding that claimant failed to present adequate evidence to convince the tribunal.

On his part, FCCPC's lawyer, Tam Tamuno, did not oppose the claimant's application for amendment.

"The first originating process did not contain any reliefs against the second defendant whereas the second amended version is seeking some prayers against the second defendant," Mr Tamuno said.

The lawyer then stated that though he would not oppose Onifade's application for amendment, "we will require time to file our reaction to the new issues that have been raised by the fresh application."

Ruling

In a ruling, the tribunal held that where amendment enables a party to correct errors, mistakes in their application in the interest of justice without prejudice to other parties, such application ought to be granted.

"In conclusion, though the 1st defendant put up serious argument, he does not point out any injustice he will suffer in this and he did not file a counter affidavit to the application," the tribunal said before granting Mr Onifade's request.

Background

In Mr Onifade's suit, he urged the tribunal to issue an order restraining Multichoice from increasing subscriptions for its TV services on April 1, pending the hearing and determination of the motion on notice filed on March 30.

The tribunal granted the ex-parte motion, directing parties to maintain "status quo antebellum."

However, during a sitting on April 11, the claimant said he had filed a written address and contempt proceedings against the company's management for allegedly disregarding the tribunal's order made on March 30.

But Multichoice's lawyer, Mr Agoro, contended that because of his application challenging the jurisdiction of the tribunal, "this court is to first inquire whether it has the jurisdiction to determine the application."

The pay-TV, Multichoice Nigeria headquartered in South Africa, did an upward review of its subscriptions, while the suit was pending.

Multichoice had announced new rates for its offerings in Nigeria, the firm's latest price increase that is bound to irk its customers.

The firm said from April 1, subscribers will pay more for all its bouquets and its premium package on DSTV will cost N21,000, no longer N18,400.

Compact Plus which cost N12,400 before will now go for N14,250, while Compact will cost N9,000 instead of N7,900.

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