By Milcah Tanimu
The Federal Competition and Consumer Protection Commission (FCCPC) and the National Broadcasting Commission (NBC) have submitted conflicting positions to the Federal High Court in Abuja regarding Pay-Per-View subscription requests for Multichoice Nigeria’s GOtv and DStv services.
In suit number FHC/ABJ/CS/563/2024, Multichoice Nigeria sought a court ruling to reject a plaintiff’s request to compel the company to meter its GOtv and DStv decoders to reflect customer subscriptions on a pay-per-view basis or during viewing.
The fresh legal dispute arose when Maduabuchi O. Idam Esq. requested an order compelling the FCCPC, NBC, and the Attorney General of the Federation to mandate every TV network provider in Nigeria to meter subscriptions per view and allow rollover of unused subscriptions after they expire.
Contention Between Customers and Multichoice
The claimant also seeks an order requiring Multichoice to allow customers like Idam to rollover unused subscriptions, enabling them to maximize their investment in the service.
Idam contends that GOtv subscriptions are not metered according to viewing time. He claims that customers lose access to the service upon expiration of their subscription, regardless of usage. Additionally, he alleges that arbitrary price hikes implemented in May 2024 prevent customers from fully utilizing their purchased services.
Multichoice refutes the allegations of customer exploitation. They cited prior discussions with the NBC about the feasibility of a Pay-As-You-Go (PAYG) model, which they argue is not viable due to technological limitations in satellite broadcasting.
“PAYG has been investigated multiple times by the National Assembly. In the 8th Assembly, the House Committee on Information found allegations of exorbitant Pay-TV charges against Multichoice unsubstantiated and deemed the PAYG model technically and commercially unfeasible,” Multichoice stated.
FCCPC’s Position
In a counter affidavit dated August 16, 2024, FCCPC officer Mr. Adedeji Bankole asserted that most allegations related to the Pay-Per-View request are incorrect. He clarified that while the FCCPC promotes competition and consumer protection, it does not regulate how businesses operate.
“The FCCPC cannot direct or compel Multichoice to regulate or meter their subscriptions,” Bankole stated. He mentioned that the FCCPC has previously investigated Multichoice and noted that other consumers have taken the company to court over tariff increases.
NBC’s Stance
Representing the NBC, Odoeme N.V. informed the court that the NBC received a complaint from the plaintiff on September 20, 2023. Following this, the NBC established a committee to investigate the Pay-Per-View requests.
He noted that Multichoice communicated its intention to raise subscription fees but did not respond to invitations for further discussions. However, the NBC is currently unable to act against Multichoice due to a prior court judgment stating it lacks the authority to investigate or sanction the company.
“This judgment has halted the NBC’s ability to implement any findings or take action against Multichoice regarding the plaintiff’s complaint,” the NBC stated.
The court has scheduled a hearing for December 5, 2024, regarding this legal dispute.
Background Information
Multichoice has faced scrutiny for allegedly exploiting Nigerian customers and has been investigated by lawmakers and consumer protection tribunals for its pricing practices. Recently, the Nigerian Competition and Consumer Protection Tribunal allowed lawyer Festus Onifade to withdraw his case against Multichoice regarding a GOtv and DStv price hike.
In April 2024, Multichoice announced new price adjustments for DStv and GOtv packages, stating, “On May 1, 2024, we will adjust our prices across all our packages. We recognize the impact this change may have on you, our valued customer, but the rise in business operation costs has compelled this decision. We remain committed to providing the best entertainment experience and high-quality content.”
