The Federal High Court in Abuja has been informed of the views taken by the Federal Competition and Consumer Protection Commission (FCCPC) and the National Broadcasting Commission (NBC) regarding Pay-Per-View subscription requests against Multichoice Nigeria products, GOtv and DStv.
In lawsuit number FHC/ABJ/CS/563/2024, Multichoice Nigeria Limited requested that the court reject a plaintiff’s application forcing it to meter its DStv and GOtv decoders to read subscribers’ subscriptions just once, either during viewing or per view.
Maduabuchi O. Idam Esq. brought the FCCPC and NBC into a new legal battle by requesting an order directing the Attorney General of the Federation, the FCCPC, and NBC to order all TV network providers in Nigeria to regulate or meter their subscriptions to read-per-view or during viewing and to roll over unused subscriptions after the subscription duration expires.
Customer/Multichoice Conflict
In order to maximize their investment in Multichoice’s products, the claimant further requests in the lawsuit that Multichoice force Idam and other Nigerian consumers to roll over unused subscriptions upon expiration.
In its most recent lawsuit, Idam claims that GOtv subscriptions are not metered and do not consider watching time. Rather, users are terminated from service at the end of their subscription period, regardless of consumption.
Idam claims that in addition to the purportedly arbitrary price increases that went into effect in May 2024, Multichoice prevents users from rolling over unused subscriptions, which keeps them from making the most of the services they have paid for. He calls this development oppressive.
When asked about the viability of the Pay-As-You-Go (PAYG) model during meetings with NBC, Multichoice, and other pay-TV operators, stated that it is not technically or commercially viable in satellite broadcasting due to current technological limitations. Multichoice refutes the allegations of customer oppression and calls the court’s attention to these earlier clarifications.
“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 said.
FCCPC’s Statements
Mr. Adedeji Bankole, an officer in the Commission’s Department of Legal Services, countered the claimant’s submission in the FCCPC’s counter affidavit dated August 16, 2024, which THE NEWS CHRONICLES exclusively saw. He maintained that most of the allegations regarding the commission’s Pay-Per-View request are false.
Bankole emphasized that while the FCCPC does not directly regulate company practices, its mission is to safeguard consumers and foster competition.
He said that although the FCCPC establishes rules and upholds laws on consumer protection and competition, it has no say over how companies should run or be run.
“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 said.
He continued by saying that Multichoice has been the subject of multiple FCCPC investigations, that other subscribers and consumers have previously sued Multichoice over rate increases, and that some of those cases were still on appeal.
NBC’s Opinion
Regarding the subject at hand, Odoeme N.V., speaking on behalf of NBC, informed the court that it had received a complaint from the plaintiff dated September 20, 2023, which was directed towards the Multichoice TV CEO.
It formed a committee to look into the subject of demands for Pay-Per-View, among other things, in response to the complaint.
He claimed that Multichoice notified NBC of their plan to raise the membership price in letters dated October 30, 2023, and April 23, 2024.
He went on to say that NBC asked and instructed Multichoice to halt the increase in its letters dated November 7, 2023, and April 30, 2024, and that the pay-TV provider was invited to a meeting to continue the conversation.
However, Multichoice declined the invitation. In response to the plaintiff’s complaint, NBC contacted Multichoice on September 28, 2023, but neither party provided a response or an explanation, the speaker said.
He clarified that prior to the completion of the assignment by the committee tasked with looking into the plaintiff’s complaint against Multichoice, the Federal High Court of Abuja issued a ruling stating that the NBC lacked the authority to investigate or take action because it is neither the Nigerian Police nor the court.
NBC stated that it cannot handle any complaints against Multichoice because the court’s ruling currently constrains it.
This ruling delayed the application of the recommendations the (NBC)committee made. In its reply, which Nairametrics reviewed, NBC claimed it could not discipline or direct Multichoice concerning the plaintiff’s complaint because of the abovementioned ruling.
According to information obtained by Nairametrics, the court has set a hearing date of December 5, 2024, to discuss this legal matter.
What To Note
THE NEWS CHRONICLES reports that Multichoice has faced accusations of exploiting Nigerian customers.
Legislators and consumer protection tribunals have investigated the Pay-TV operator for its pricing policies throughout the years.
The hearing comes after the Nigerian Competition and Consumer Protection Tribunal granted attorney Festus Onifade’s plea to drop his lawsuit against Multichoice Nigeria over an increase in GOtv and DStv subscription costs on July 12, 2024.
For violating interim orders, the tribunal initially penalised Multichoice 150 million naira and required a one-month free subscription; however, Multichoice appealed and requested a stay of proceedings.
Onifade withdrew the lawsuit, which the tribunal accepted without imposing fees. The case was rescheduled for November.
On Wednesday, April 24, 2024, Multichoice announced new price modifications for its DStv and GOtv bundles. Subscribers received an email saying, “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.”
