An antitrust tribunal in Nigeria has fined MultiChoice Group and ordered a month of free viewing for its subscribers in the West African nation, after the South African broadcaster defied it by raising prices, Lagos-based Punch newspaper reported.
The Competition and Consumer Protection Tribunal fined the company ₦150-million naira (R1.9-million) and told it to allow customers a month of free viewing of its DStv and GOtv platforms.
The ruling was made after the company failed to adhere to an order by the tribunal to hold off from raising subscription fees without proper notice, following a lawsuit filed by an Abuja-based lawyer who said the eight-day notice given for the price increase was inadequate, Punch said.
“We disagree with the ruling and will therefore file an appeal,” the company said in a statement, while declining further comment.
The news of the fine comes just months after MultiChoice settled a tax dispute in Nigeria, with the South African-listed pay-television operator agreeing to hand over a total of US$37.5-million.
The settlement amount was far below the sum that had been sought by Nigeria’s tax authorities, Reuters reported in February.
Tax claim
Nigeria’s Federal Inland Revenue Service froze MultiChoice Nigeria’s accounts in 2022 and served MultiChoice Group with a ₦1.8-trillion (R24-billion) tax claim for its Nigeria operation and a R6.5-billion claim for VAT.
The group said in a statement the total tax amount of ₦35.4-billion would be paid by MultiChoice Nigeria and MultiChoice Africa Holdings, to be offset against “security deposits and good faith payments made to date”. — Nduka Orjinmo, (c) 2024 Bloomberg LP and Nqobile Dludla, (c) 2024 Reuters, with additional reporting, © 2024 NewsCentral Media
