Multichoice Win as Tribunal Dismisses Price Hike Suit Filed by 962 Subcribers
A Competition and Consumer Protection Tribunal (CCPT) sitting in Abuja has dismissed a class action suit filed against MultiChoice Nigeria by Uche Diala and 961 other DStv and GOtv subscribers, citing a lack of jurisdiction.
The claimants challenged the company’s decision to raise subscription tariffs in November 2023 and May 2024 without prior consultation, describing the increases as “arbitrary, exploitative and amounting to unfair trade practices.” They also sought the introduction of a pay-as-you-view billing model similar to what is obtainable in South Africa.
MultiChoice, through its counsel, filed a preliminary objection, arguing that the tribunal lacked the authority to determine pricing matters and that the claimant failed to obtain leave to file a class action.
In its ruling, a three-member panel led by Thomas Okosu upheld the objection, stating, “The issue of price regulation is a matter that falls within the exclusive purview of the President of the Federal Republic of Nigeria, as stipulated in existing legislation.”
The tribunal emphasised that the core reliefs sought by the claimants related to pricing, a function covered under the Price Control Act and outside the tribunal’s mandate. “The core issues raised by the claimants amounted to a request to regulate the pricing of products and services, which falls under the Price Control Act and is solely the responsibility of the executive arm of government,” it ruled.
Although the tribunal noted that seeking leave for a representative action is good practice, it held that failure to do so was not fatal in this case.
“This suit is accordingly struck out for want of jurisdiction,” the panel concluded.
