Tariff Hikes: Tribunal Dismissses Class Action Suit Against MultiChoice

The Competition and Consumer Protection Tribunal (CCPT) in Abuja has dismissed a class action suit filed by one 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 challenged MultiChoice’s subscription price increases in November 2023 and May 2024, which the claimants described as arbitrary, exploitative, and unfair. Diala and others sought to reverse the hikes and compel the company to adopt a more flexible billing model, such as a pay-as-you-view system used in other countries like South Africa. They also accused MultiChoice of price discrimination against Nigerian consumers.MultiChoice, through its counsel, raised a preliminary objection, arguing that pricing decisions do not fall within the tribunal’s remit and that the suit was improperly filed as a class action without first seeking the tribunal’s leave.In its ruling on Thursday, the tribunal’s three-member panel led by Justice Thomas Okosun held that the core issues raised, which were pricing and tariff regulation, fall under the exclusive purview of the executive branch, particularly the President, as stipulated under 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,” Okosun stated.While the tribunal acknowledged it holds both original and appellate jurisdiction under the FCCPC Act, it emphasized that such authority does not cover general price control unless abuse of market dominance is established, a point the claimants failed to prove.On the procedural matter of filing a class action without prior approval, the tribunal noted that although it is ideal to obtain leave, failure to do so was not fatal in this instance since the claimants demonstrated a shared grievance and common interest.Nonetheless, the tribunal upheld MultiChoice’s objection, ruling that it lacked jurisdiction to adjudicate the matter. “The preliminary objection of the first defendant succeeds,” the panel held. “This suit is accordingly struck out for want of jurisdiction.”This ruling follows a similar outcome on May 8, when a Federal High Court in Abuja upheld MultiChoice’s price increases after the company sued the FCCPC. In that judgment, Justice James Omotoso declared that the FCCPC lacked the authority to fix or suspend subscription rates.