The Federal Competition and Consumer Protection Commission (FCCPC) and the National Broadcasting Commission (NBC) have outlined their differing positions regarding Pay-Per-View subscription requests for Multichoice Nigeria’s products, GOtv and DStv, in a case currently before the Federal High Court in Abuja.
Multichoice Nigeria Limited has filed a legal request (suit number FHC/ABJ/CS/563/2024) asking the court to dismiss a plaintiff application that seeks to compel the company to meter its GOtv and DStv decoders to charge customers based on viewing time.
The case has emerged from a legal dispute initiated by Maduabuchi O. Idam Esq., who is requesting an order that would mandate all TV network providers in Nigeria to implement regulations allowing for Pay-Per-View billing and the rollover of unused subscriptions after their expiration.
In the lawsuit, Idam claims that GOtv subscriptions are not metered based on usage, leading to disconnections once the subscription period ends, regardless of whether the service was fully utilised. He has accused Multichoice of arbitrary price hikes, which took effect in May 2024, and contends that the company does not allow for the rollover of unused subscriptions, which he described as oppressive.
In its defense, Multichoice rejected the allegations, citing previous discussions with the NBC that deemed the Pay-As-You-Go (PAYG) model technically and commercially unviable for satellite broadcasting. “PAYG has been investigated several times by the National Assembly. In the 8th Assembly, the House Committee on Information, National Orientation, Ethics, and Values found that allegations of excessive Pay-TV subscription charges against Multichoice were unsubstantiated,” the company stated.
In a counter affidavit dated August 16, 2024, FCCPC officer Mr. Adedeji Bankole refuted the claims made by the plaintiff, asserting that the FCCPC’s mandate is to promote competition and protect consumers, but it does not dictate business operations. “The FCCPC is not in any position to direct or compel Multichoice to regulate or meter their subscriptions to read per view or during viewing,” he stated, emphasising that the Commission’s role is limited to setting guidelines and enforcing competition laws.
Bankole also mentioned that multiple investigations have been conducted into Multichoice regarding customer complaints, but the Commission does not have the authority to enforce such operational changes.
Odoeme N.V., representing the NBC, informed the court that the Commission had received a complaint from Idam dated September 20, 2023, concerning the Pay-Per-View requests. In response, the NBC formed a committee to investigate the complaints. However, Odoeme noted that Multichoice did not respond to the NBC’s requests for discussions regarding the proposed price increases.
The NBC stated it is bound by a recent court judgment, which determined that it lacks the authority to investigate or sanction Multichoice over these issues. As a result, the NBC cannot address any complaints against the company.
The court has scheduled a hearing for December 5, 2024, to address the legal dispute further. NATIONAL ECONOMY has reported that Multichoice has faced ongoing scrutiny regarding its pricing practices and has been accused of exploiting Nigerian consumers.
This latest case follows a previous decision from the Nigerian Competition and Consumer Protection Tribunal, which on July 12, 2024, granted a request to withdraw a case against Multichoice regarding subscription price hikes. The tribunal had initially fined Multichoice 150 million naira and mandated a one-month free subscription for violating interim orders, but Multichoice filed for an appeal and a stay of proceedings.
On April 24, 2024, Multichoice announced new price adjustments for its DStv and GOtv packages, citing rising operational costs as the reason behind the decision. Despite the price increases, the company expressed its commitment to providing high-quality entertainment and services.