Subscribers lose battle as Tribunal throws out MultiChoice tariff case

The Competition and Consumer Protection Tribunal (CCPT) in Abuja has dismissed a class action lawsuit filed by Uche Diala and 961 other DStv and GOtv subscribers against MultiChoice Nigeria and the Federal Competition and Consumer Protection Commission (FCCPC), citing lack of jurisdiction.

The suit, which sought to reverse subscription price hikes implemented by MultiChoice in November 2023 and May 2024, accused the pay-TV provider of arbitrary, exploitative, and discriminatory pricing.

The claimants also demanded the adoption of a more flexible billing model, such as the pay-as-you-view system used in countries like South Africa.

However, MultiChoice, through its legal counsel, challenged the competence of the case, arguing that subscription pricing lies outside the tribunal’s mandate.

It also contended that the suit was wrongly instituted as a class action without prior approval from the tribunal.

Delivering its ruling on Thursday, a three-member panel led by Justice Thomas Okosun upheld MultiChoice’s preliminary objection, stating that the tribunal lacked jurisdiction to entertain the matter.

The panel concluded that issues of pricing and tariff regulation fall exclusively under the authority of the President, as provided in the Price Control Act.

“The issue of price regulation is a matter that falls within the exclusive purview of the President of the Federal Republic of Nigeria,” Justice Okosun ruled.

While acknowledging its jurisdiction under the FCCPC Act to handle consumer protection issues, the tribunal clarified that such authority does not extend to general price control unless the complainants can prove abuse of market dominance, which, in this case, they failed to do.

On procedural grounds, the tribunal noted that although it is best practice to obtain leave before filing a class action, the failure to do so was not fatal in this case since the plaintiffs shared a common grievance.

However, this procedural leniency did not rescue the suit from being struck out.

“The preliminary objection of the first defendant succeeds,” the panel held. “This suit is accordingly struck out for want of jurisdiction.”

Thursday’s decision aligns with a similar ruling delivered on May 8 by the Federal High Court in Abuja, in which Justice James Omotoso affirmed that the FCCPC lacked the statutory powers to fix or suspend prices set by MultiChoice.

The back-to-back legal victories for MultiChoice signal a growing judicial consensus that pricing regulation remains the exclusive domain of the executive arm of government placing it beyond the reach of both consumer tribunals and regulatory agencies, unless specific infractions are proven.