MultiChoice battles Nigeria

The legal exchange was spurred by an upward change in subscription fees put in place by the company in July. A package of channels with a cost of 14 700 naira ($40) was hiked to 15 800 naira. A smaller bouquet of channels with a price tag of 9 900 naira is now 10 650.

MultiChoice, which is a major source of music and music videos for Nigerian viewers with headquarters in South Africa, received complaints from subscribers after the price review went public.

Those complaints led to interference from the Consumer Protection Council (CPC), which filed a suit on behalf of the federal government. The court in the interim asked for MultiChoice to stop any activity that would interfere with investigations.

“An order of interim injunction is hereby made restraining the defendant/respondent by itself representatives, agents, affiliates, officers, or privies howsoever described from continuing the implementation of any increased subscription rate or price review policy imposing increased charges and costs on the consumers of defendant/respondent’s services pending determination of the plaintiff/applicant’s motion on notice for interlocutory injunction filed in this suit,” said Nnamdi Dimgba of the federal high court in Nigeria's capital city, Abuja.

MultiChoice has now responded with a case of its own, claiming the government is operating against free market laws.

“We believe that the order is an affront to the free market economy and we have now filed a notice of appeal and an application for stay of execution, pending the hearing of the appeal,” the company said.

“The CPC has been accordingly served with the requisite processes. In light of the application for a stay of execution, the status quo therefore prevails. MultiChoice Nigeria will always operate within the ambit of the law and will continue with the authorities to ensure the best outcome for our customers. We remain committed to providing the best quality of entertainment and premium content at the best possible prices.”

Nonetheless, the CPC has said MultiChoice would be in the wrong should it insist on its reviewed prices, given Dimgba’s ruling.  

“As far as CPC is concerned, the order of the court issued on Monday stopping MultiChoice from going ahead with the rates increase subsists till further notice,” CPC spokesperson Abiodun Obimuyiwa told local media.

“Until the court rules that the order should be vacated, that order is the status quo referred to by the application for appeal. What that means is, if MultiChoice goes ahead to collect the new subscription rates from subscribers, it would be acting in violation of the court order and will be in contempt.”