MultiChoice Risks N100m Fine for Alleged ‘Willful Disobedient’
MultiChoice faces not less than a N100 million fine or more for failing to comply with Tribunal orders, according to Section 51 of the Federal Competition and Consumer Protection Act.
The Act states that a corporate body is liable upon conviction for contempt of a fine not less than “N100 million or 10 per cent of its turnover in the preceding year.”
Meanwhile, the Competition and Consumer Protection Tribunal sitting in Abuja, on Thursday, has disagreed with MultiChoice Nigeria Ltd, the operator of the satellite televisions, DStv and Gotv, over a notice of appeal brought to stay execution of its judgment.
The three-member tribunal, headed by Thomas Okosun, rejected a request by counsel for MultiChoice, Jamiu Agoro, to hear his notice of appeal seeking an order of the panel staying execution of its judgment delivered on Tuesday pending the hearing and determination of the appeal before the Court of Appeal, Abuja.
Upon resumed proceeding, Agoro informed that after the company reviewed the tribunal’s judgment delivered on Tuesday, the firm decided to appeal the said decision. He said two applications were filed and “one is an application seeking for staying of execution.”
He, however, said that though an appeal had been filed, MultiChoice was already taking steps on the judgment, directing its MD and directors to appear with the 2021 audited financial report.
The lawyer told the tribunal that there was no management staff of the company in Abuja at present that could have brought the report.
“In view of our motion for stay of executing which has been served on all parties, we pray that you set the motion down for hearing for the tribunal to look at our application if it is meritorious or not,” he said. But the tribunal disagreed with Agoro, saying the business of the day was for the company to appear before it with the audited report. Besides, the panel said there was no motion on appeal before it.
“You know the law counsel. First, those papers are not with us. The only reason we are here this morning is to make a pronouncement on the penalty the 1st defendant MultiChoice is to pay.
“It is your right to appeal. The only point I took from you is that you don’t have your details here, rather than raising issues of appeal. It is your right to appeal,” Okosun said.
The tribunal then stood down the matter to take it decision.
The tribunal, had, on Tuesday, delivered it judgment in a suit filed by a lawyer, Festus Onifade and Coalition of Nigeria Consumers, on behalf of himself and others.
The claimants had sued MultiChoice and the Federal Competition and Consumer Protection Commission (FCCPC) as 1st and 2nd respondents, shortly after the company, on March 22, announced its plan to increase the price of its products from April 1.
The claimants had prayed the tribunal for an order, restraining the firm from increasing its services and other products on April 1, pending the hearing and determination of the motion on notice dated and filed on March 30.
And the tribunal granted the ex-parte motion, directing parties to maintain status quo ante bellum.
But despite the tribunal’s order, the company was alleged to have gone ahead with the price increase on DStv and Gotv subscriptions and other products.
Against this backdrop, the claimants, in a motion on notice asked the tribunal for an order directing the managing director and the directors of MultiChoice to appear and show cause why they should not be committed to prison for willful disobedience of the order of the tribunal granted on the March 30.
They also sought an order, directing MultiChoice to pay 10 per cent of its annual turnover for failure to comply with the order in accordance with Section 51 (1) and 2 of the FCCPC Act, 2018 and under the inherent jurisdiction of the tribunal.
Onifade averred that MultiChoice had a penchant for disobeying order of the court. The lawyer, who was the 1st claimant, said he was a loyal and longtime customer of MultiChoice with DStv account number: 41353565835.
And on April 11, the tribunal again ordered MultiChoice to revert back to the old prices by maintaining the status quo of its March 30 order, pending the hearing and determination of the substantive matter, but to no avail.
But while delivering the judgment on Tuesday, the tribunal ruled that the Managing Director of the firm, John Ugbe, and the directors should appear with the 2021 audited financial report of the company before it on Sept. 8 (today).
“The Managing Director and directors of the 1st defendant (MultiChoice) are to appear before this honourable tribunal on Sept. 8 with certified true copies of their audited financial report of the year 2021,” the panel declared.
The tribunal said that the audited financial report would “enable the tribunal to determine the appropriate penalty to impose on MultiChoice for being in contempt of the orders of this honourable tribunal made on March.”
Section 51 of the CCPT Act states that a corporate body is liable upon conviction for contempt of a fine not less than “N100 million or 10 per cent of its turnover in the preceding year.”
The panel refused to grant the claimants’ prayer to direct the firm to adopt a pay-as-you-view model of billing for all its products and services. READ: Dstv, Gotv Tariff Hike: Tribunal Orders MultiChoice MD to Produce Audited Financial Report
However, it directed FCCPC to investigate if the firm adopts the package for its products and services in other countries, especially South Africa, and see how some could be adopted in Nigeria, and publish its findings within six months of the order.
The tribunal, in the judgment, also refused to grant the prayers of the claimants, seeking an order directing the firm to revert to old price regime.
The three-member panel held that the power to regulate prices of goods and services neither resides in the FCCPC, the regulatory agency, nor the tribunal, saying only the president of Nigeria could do so
The tribunal also dismissed the claimants’ demand for N10 million damages for being unable to prove how they had suffered psychologically from the company’s act. The panel, in the judgment, rebuked FCCPC over the Act of negligence to complaints by the consumers.
“The 2nd defendant (FCCPC) must also improve on its management of complaints from the public that it is established to serve.
“A situation where an aggrieved consumer does not get feedback on a duly filed complaint does not speak well for the country,” it said.
The tribunal, therefore, charged the commission to resolve all lingering issues between MultiChoice and numerous consumers of the products and services of the company.
Onifade, in an amended originating summons, granted by the tribunal on June 20, had sued the firm for N10 million damages.
The lawyer also sought the order directing and mandating MultiChoice to adopt a pay-as-you-view model of billing for all its products and services forthwith.
He further urged the tribunal to make an order directing the firm to make the local television stations in the country free and stop the company from cycling content.
But counsel for MultiChoice, Jamiu Agoro, in a motion on notice, challenged the jurisdiction of the tribunal to hear the matter as the claimant lacked the locus to institute the action.
Jamiu had argued that the order of the tribunal made on April 11, asking MultiChoice to revert to old rates was made against a completed act, the firm, having increased its tariffs on April 1.
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. As at the time of filing the story, the tribunal was yet to commence sitting. # MultiChoice Risks N100m Fine for Allege ‘Willful Disobedient’
