The Federal Competition and Consumer Protection Commission (FCCPC) and the National Broadcasting Commission (NBC) have informed the Federal High Court Abuja about their respective positions on Pay-Per-View subscription requests against Multichoice Nigeria products, GOtv and DStv.
Multichoice Nigeria Limited had asked the court in suit number FHC/ABJ/CS/563/2024 to refuse a plaintiff application seeking to compel it to meter its GOtv and DStv decoders to read customers’ subscriptions only per view or during viewing.
FCCPC and NBC were drawn into the fresh legal dispute by Maduabuchi O. Idam Esq, who sought an order compelling the FCCPC, NBC, and the Attorney General of the Federation to direct every TV network provider in Nigeria to regulate or meter their subscriptions to read per view or during viewing and to roll over unused subscriptions after the expiration of the subscription duration.
Customer/Multichoice Contention
In the suit, the claimant also seeks an order compelling Multichoice to roll over unused subscriptions upon expiration for Idam and other Nigerian customers, allowing them to maximize their investment in its products.
In this latest suit, Idam alleges that GOtv subscriptions, for instance, are not metered and do not account for viewing time; instead, customers are disconnected from service upon the expiration of their subscription, regardless of usage.
Idam states that apart from the alleged arbitrary price hikes that took effect in May 2024, Multichoice does not allow customers to roll over unused subscriptions, preventing them from fully utilizing their purchased services, citing this development as oppressive.
Multichoice denies the allegations of customer oppression, drawing the court’s attention to prior clarifications from Multichoice and other pay-TV operators during meetings with the NBC regarding the feasibility of the Pay-As-You-Go (PAYG) model, stating that it is not commercially or technically viable in satellite broadcasting due to current technological limitations.
“PAYG has been investigated several times by the National Assembly. In the 8th Assembly, the House Committee on Information, National Orientation, Ethics, and Values, led by Hon. Olusegun Odebunmi, found that allegations of exorbitant Pay-TV subscription charges against Multichoice and the GOtv license holder were unsubstantiated and that the PAYG model is not technically or commercially feasible in the broadcast industry,” Multichoice stated.
What FCCPC Is Saying
In FCCPC’s counter affidavit dated August 16, 2024, and exclusively seen by Nairametrics, Mr. Adedeji Bankole, an officer in the Department of Legal Services of the Commission, countered the claimant’s submission, maintaining that most of the allegations regarding its Pay-Per-View request are incorrect.
Bankole stressed that the FCCPC’s mandate focuses on promoting competition and protecting consumers, but it does not directly regulate how businesses should be run.
He stated that while the FCCPC sets guidelines and enforces laws related to competition and consumer protection, it does not dictate how businesses should be operated or managed.
“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 and to roll over unused subscriptions after the expiration of the subscription duration,” he stated.
He added that the FCCPC has investigated Multichoice several times before and that other subscribers/consumers have taken Multichoice to court in the past over increases in tariffs, and several of those cases are now on appeal.
NBC’s Position
Still on the matter, Odoeme N.V., representing the NBC, submitted to the court that it received a complaint from the plaintiff dated September 20, 2023, addressed to the Chief Executive Officer of Multichoice TV.
In response to the complaint, it set up a committee to investigate the matter concerning requests for Pay-Per-View, among others.
He stated that Multichoice, through their letters dated October 30, 2023, and April 23, 2024, informed the NBC of their intention to increase the subscription fee.
He continued that the NBC, in its letters dated November 7, 2023, and April 30, 2024, urged and directed Multichoice to suspend the increase while inviting the pay-TV provider for a meeting for further discussion.
“But Multichoice did not honor the invitation. The NBC, on September 28, 2023, wrote to Multichoice to respond to the plaintiff’s complaint, but Multichoice did not respond or make any representation,” he added.
He explained that before the committee established to investigate the plaintiff’s complaint against Multichoice concluded its assignment, the Federal High Court Abuja delivered a judgment declaring that the NBC, not being either the Nigerian Police or the court, does not have the power to investigate or sanction.
The NBC said it is bound by the judgment of the court and cannot presently attend to any complaint against Multichoice for now.
“This judgment forestalled the implementation of the (NBC)committee’s findings. Owing to the said judgment, the NBC could not take any action in sanctioning or giving directives to Multichoice regarding the plaintiff’s complaint,” the NBC stated in its submission, seen by Nairametrics.
Nairametrics has gathered that the court has scheduled December 5, 2024, for a hearing on this legal dispute.
What You Should Know
Nairametrics reports that Multichoice has faced accusations of exploiting Nigerian customers.
Over the years, the Pay-TV provider has been scrutinized by lawmakers and consumer protection tribunals over its pricing practices.
The hearing follows the Nigerian Competition and Consumer Protection Tribunal’s decision on July 12, 2024, granting a request from lawyer Festus Onifade to withdraw his case against Multichoice Nigeria concerning a price hike of GOtv and DStv subscriptions.
Initially, the tribunal fined Multichoice 150 million naira and mandated a one-month free subscription for violating interim orders, but Multichoice appealed and filed for a stay of proceedings.
The tribunal rescheduled the case to November, but Onifade chose to withdraw the suit, which the tribunal approved without awarding costs.
Multichoice announced new price adjustments for DStv and GOtv packages on Wednesday, April 24, 2024. An email to subscribers stated, “On Wednesday, May 1, 2024, we will adjust our prices across all our packages on DStv and GOtv. We understand the impact this change may have on you—our valued customer—but the rise in the cost of business operations has led us to make this difficult decision. It remains our mission to provide the best entertainment and viewing experience to you, and we are committed to continuing to deliver high-quality content and unparalleled service.”
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