The Federal Competition and Consumer Protection Commission ( FCCPC ) on Friday 18/3/2022 charged MultChoice Nigeria Limited a subsidiary of MultiChoice Group regarding an allegation of “abuse of dominance”.
On August 28, 2022, the commission issued a notice of commencement of investigation (NCI) pursuant to Section 157 and 158 of the Federal Competition and Consumer Protection Commission Act, 2018 (FCCPC)
How it started
In July 2018, MultiChoice Nigeria announced the upward review of the monthly subscription rates for its cable television systems, DSTV and GoTV, with effect from August 1, 2018.
Over time, the commission received a series of complaints about the service provider, this prompted the investigation in other to gather necessary information about the allegation
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“The commencement of this investigation was prompted by complaints to the
Commission regarding allegations of abuse of dominant position by MCN.”
On October 6, 2020, the commission commenced its investigation on MultiChioce Nigeria Limited requesting for information on its Nigerian subscribers’ market share, product price, distribution network, and content source and packaging in the form of relevant statistics; and also data was requested from other sources as well for validation.
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After a series of analyses, the commission sent the details of the finding to MCN
“The Commission has prepared and delivered a detailed Investigative Report
to MCN showing its findings with respect to the investigation.”
FCCPC Verdict
According to the Memorandum released on Friday 18/3/2022 by NCCPC and signed by Tam Tamunokonbia, the Director of Legal Service, the commission gave its verdict on the matter after much deliberation. It stated.
THE COMMISSION PURSUANT TO ITS POWERS UNDER THE FCCPA, IN PARTICULAR, BUT NOT LIMITED TO SECTIONS 157, 158, AND 159 (1) (A), NOW HEREBY ORDERS AS FOLLOWS:
That MultiChoice Nigeria Limited shall:
1. For the purpose of ensuring that any material changes in key terms with respect
to value propositions including, but not limited to cost or price, on account of its dominance, and to prevent consumers from being otherwise exploited, including by the conduct of other players in the market, MultiChoice shall introduce additional features prior to any proposed or contemplated changes in terms and conditions as identified in this Order to the extent that such change in price constitutes an increase in what consumers pay, regardless of any value addition. Such features should at a minimum include:
a. A price lock option that allows subscribers to maintain the same subscription fee for a minimum period of one year subject to a contractual agreement that clearly specifies the applicable terms and conditions. MultiChoice Nigeria shall submit to the Commission a draft of this agreement within seven (7) days of receipt of this Order.
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b. A better value for money proposition for annual prepayment of subscription, including the ability to suspend subscription at least once every quarter of the year.
c. Clear communication to each subscriber regarding all channels available within their selected bouquet option. d. Any other value proposition MultiChoice considers appropriate and applicable, subject to adequate engagement with the Commission.
2. Provide completely toll-free customer service lines which are operational 24 hours daily, and through which consumers may receive support with respect to their use of the services offered by MultiChoice Nigeria. These lines must be toll-free across networks, not only within the same networks as is presently the case. MultiChoice Nigeria must within the time stipulated in the Commission’s Order of February 4, 2022, provide the Commission with a work plan and timeline for the purpose of articulating, and addressing where possible and applicable, any constraints with respect to complying with, and operationalizing this specific Order.
3. Advertise the existing toll-free customer service lines more frequently and more widely on channels available and under the control of MultiChoice on the DSTV and GOTV platforms. Such advertisement must run on each channel at least daily.
4. Increase the number of times all subscribers may suspend their subscription up to at least four (4) times annually.
5. Submit to the Commission a compliance report demonstrating full compliance with the above orders within the time stipulated in the Commission’s Order of February 4, 2022.
Fines Compelled on MuiltiChoice
Furthermore, part of the charges includes violation of the order of commission which attracts a fine/ penalty of five million naira (5,000,000) under the FCCPC Administrative Penalties Regulation 2020.
“TAKE FURTHER NOTICE that in addition to other remedies, a violation of an Order of the Commission attracts a fine/penalty of N5,000,000.00 (Five Million Naira only) under the Federal Competition and Consumer Protection Commission (Administrative Penalties) Regulations, 2020.”
What To Know About Federal Competition and Consumer Protection Commission ( FCCPC )
The Federal Competition and Consumer Protection Commission (FCCPC) is Nigeria’s most prominent competition and consumer protection authority.
FCCPA was passed in 2018 in order to ensure that all Nigerians have access to safe and affordable products as well as to defend their rights as consumers.
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About MultiChoice Nigeria Limited
MultiChoice Nigeria Limited (MCN) is a MultiChoice Group (MCG) subsidiary. MCG operates video-entertainment subscriber platforms in Nigeria, South Africa, and 49 other Sub-Saharan African countries through its subsidiary, MultiChoice Nigeria (MCN), as well as satellite, digital terrestrial television (DTT), over-the-top (OTT), and related video-entertainment services for a monthly subscription fee.