Tribunal dismisses class action suit against MultiChoice over lack of jurisdiction

Date:

By Abubakar Yunusa

A competition and consumer protection tribunal (CCPT) sitting in Abuja has dismissed a class action suit filed by Uche Diala and 961 other subscribers of DStv and GOtv against MultiChoice Nigeria and the Federal Competition and Consumer Protection Commission (FCCPC), citing lack of jurisdiction.

Diala had sought the intervention of the tribunal to reverse the tariff hikes and compel MultiChoice to adopt more flexible billing options in Nigeria.

He also argued that MultiChoice’s pricing model discriminated against Nigerian consumers compared to counterparts in other markets.

The suit challenged MultiChoice’s decision to increase subscription tariffs in November 2023 and May 2024 without prior consultation with consumers.

The claimants argued that the hikes were arbitrary, exploitative and amounted to unfair trade practices.

They also faulted the company’s billing model, demanding the introduction of a pay-as-you-view system similar to what is offered in other markets like South Africa.

READ MORE  Varsity Don lauds Author on Gade book

However, MultiChoice, through its counsel, filed a preliminary objection challenging the jurisdiction of the tribunal to entertain the matter.

The company argued that the pricing of its services does not fall under the tribunal’s remit, and further stated that the claimant failed to seek leave of the tribunal before instituting a class action in a representative capacity.

In its ruling on Thursday, a three-man panel, led by Thomas Okosu, after considering arguments on jurisdiction, held that the reliefs sought by the claimants bordered on price regulation.

“The issue of price regulation is a matter that falls within the exclusive purview of the President of the Federal Republic of Nigeria, as stipulated in existing legislation,” Okosu said.

The tribunal agreed with MultiChoice’s position, ruling that the “core issues raised by the claimants amounted to a request to regulate the pricing of products and services, which falls under the Price Control Act and is solely the responsibility of the executive arm of government”.

READ MORE  NYCN President Flags Off Tinubu Cares Initiative While Celebrating Nigeria's Independence

While acknowledging that the FCCPC Act grants the tribunal both original and appellate jurisdiction, the panel ruled that such jurisdiction does not extend to price control unless it pertains to abuse of dominance — a point not substantiated in this case.

On the question of whether Diala needed to obtain leave before filing a representative action, the tribunal held that while it is good practice, failure to do so in this case was not fatal to the suit.

It said representative actions can be implied from the facts of the case, particularly when a common interest and grievance are established.

Nonetheless, the tribunal concluded that it could not proceed to hear the substantive matter since it lacked the legal authority to determine issues of price regulation.

READ MORE  Primaries: N750m bribery allegation must be investigated - PDP insists

“The preliminary objection of the first defendant succeeds,” the panel ruled.

“This suit is accordingly struck out for want of jurisdiction.”

On May 8, a federal high court in Abuja upheld the hike in DStv and GOtv subscription rates following a suit filed by MultiChoice Nigeria Limited against the FCCPC.

James Omotoso, the leading judge, had said the FCCPC has no right to fix or suspend prices.

Never miss a moment! Get the stories shaping Nigeria, delivered straight to your phone. Follow Peoplesdaily Newspaper on WhatsApp for breaking news, exclusive reports, and the headlines everyone will be talking about, before anyone else.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

2027: Amnesty raises alarm over ‘troubling pattern of repression’

Amnesty International has raised alarm over what it termed...

Atiku raises alarm over INEC ballot contracts, key redeployments

Former Vice-President Atiku Abubakar has demanded immediate disclosure of...

Ayra Starr makes history, headlines NFL International halftime show

Nigerian singer, Ayra Starr, on Sunday made history as...

‘We’ll train 60 Nigerians in oil, gas skills’ — NCDMB

The Nigerian Content Development and Monitoring Board (NCDMB) and...