A Competition and Consumer Protection Tribunal (CCPT), sitting in Abuja, has ordered an application for substituted service of interim order to be served on Multi-Choice Nigeria Limited, a pay-TV company.
The order was issued following a suit filed by an Abuja-based lawyer, Festus Onifade, who had approached the tribunal to restrain MultiChoice from increasing the tariffs on its DStv and Gotv packages, which was slated to take effect from 1 May.
Onifade, in the suit marked: CCPT/OP/2/2024, had dragged MultiChoice Nigeria Limited and Federal Competition and Consumer Protection Commission before the tribunal.
The applicant in the suit filed on 29 April sought two orders.
“An order of interim injunction of this honourable tribunal restraining the 1st defendant, whether by themselves, her privies, assigns by whatsoever name called from going ahead with impending price increase schedule to take effect from 1 May 2024, pending the hearing and determination of the motion on notice.
“An order restraining the 1st defendant from taking any step(s) that may negatively affect the rights of the claimant and other consumers in respect of the suit pending the hearing and determination of the Motion on Notice”.
On Monday, 29 April, the tribunal issued an order stopping MultiChoice, from increasing its tariffs and cost of products and services scheduled to take effect from today.
A three-member tribunal, presided over by Saratu Shafii, gave the order following an ex-parte motion moved by Ejiro Awaritoma, counsel for the applicant.
The company was restrained from effecting its planned price hike pending the hearing and determination of the motion on notice filed before it.
However, upon moves by the tribunal to serve Multi-Choice, the Bailiff alleged that staff at the Abuja office, refused to receive service of the order and other court documents.
The Bailiff claimed that that one of the company’s top managers at the Abuja office refused to receive the documents and instructed that the documents be sent to the Lagos office, being the headquarters.
Following the Bailiff’s feedback, the tribunal issued an order of substituted service on Multi-Choice pursuant to Section 48 of the Federal Competition and Consumer Protection Act, 2018, and Part N, Order 14 Rule 11(1) of the CCPT Rule, 2021.
In the Certified True Copy of the order of substituted service, the Shaffi-led panel had directed that the ex-parte order in suit number CCPT/OP/2/2024 be pasted at the corporate headquarters or any known address of the branches of the Multi-Choice Nigeria Limited across Nigeria.
She also ordered that the documents be sent to the company’s “known email address, social media handles and any means of communication publicly known for Multi-Choice and shall also be pasted in the CCPT communication outlet.
Multi-choice had recently announced price increments across its DStv and GOtv packages, effective 1 May 2024.
The pay-TV company had claimed the price hike was due to the cost of business operations in Nigeria.
Prior to this hike, recall that the company had increased the prices of all its packages on 1 April 2022, despite public outcry.
Onifade then filed a suit before Thomas Okosun-led CCPT, seeking an order restraining Multi-Choice from proceeding with the planned increase pending the hearing and determination of the motion on notice dated and filed on 30 March 2022.
Although the tribunal granted the ex-parte motion, directing parties to maintain status quo ante bellum, the company went ahead with the price increase on DStv and Gotv subscriptions and other products on the said date.
The claimant, however, raised the issue of contempt, accusing MultiChoice of disobeying the tribunal order that restrained them from proceeding with the price increase.
He accused the company of having a penchant for disregarding court orders.
On 11 April 2022, after the arguments by counsel for the parties, the tribunal again ordered MultiChoice to revert back to the old prices by maintaining the status quo of its 30 March 2022 order, pending the hearing and determination of the substantive matter.
MultiChoice counsel, Jamiu Agoro, however, challenged the jurisdiction of the tribunal to hear the matter as the claimant lacked the locus to institute the action.
Agoro had argued that the order of the tribunal made on 11 April 2022, asking MultiChoice to revert to old rates, was made against a completed act, the firm, having increased its tariffs on 1 April 2022.
The lawyer argued that MultiChoice had already configured all their devices for the increase in tariff to take effect before the tribunal made its order.
Agoro added that there was no evidence presented before the tribunal of damage that the claimant had suffered.
The Thomas Okosun-led tribunal, on Sept 6, 2022, consequently dismissed Onifade’s suit, saying the power to regulate prices of goods and services does not reside in the FCCPC, the regulatory agency.
According to the tribunal, the power to regulate prices of goods and services only resides in the president.
However, the judgement that was appealed against is presently before the Court of Appeal in Abuja.
Onifade, in the instant suit, is contesting that Multi-Choice had failed to follow due process of law in accordance with Section 128 of FCCPA, 2018, in its announcement of the price hike on the grounds of short notice given to customers.
