Multichoice Receives an Order from FCCPC to allow Subscribers Maintain the same Subscription Cost for at least one year

MultiChoice Nigeria (MCN) has been ordered by the Federal Competition and Consumer Protection Commission (FCCPC) to implement an additional feature that allows subscribers to keep the same subscription rate for a minimum of one year.

Subscribers will also benefit from the extra features, which include the opportunity to suspend subscriptions at least once every quarter of the year and a greater value for money offer for annual prepayment of subscriptions.

This information is contained in a final order and notification issued by the FCCPC on Saturday, March 19, 2022, and signed by its Director, Legal Service, Mr. Tam Tamumokonbia. It may also be found on the FCCPC's official Twitter account.

Following complaints from subscribers alleging abuse of dominant position by MCN, the owners of DSTV and GOTV, Tamumokonbia stated that the Commission launched an investigation and requested relevant information relating to market share, product pricing, distribution network, sourcing, and packaging for subscribers in Nigeria.

The FCCPC said it had prepared and delivered to MCN a detailed investigative report outlining its findings in the case.

Multichoice was also asked by the commission to provide clear communication to each subscriber about all channels available within their chosen bouquet option, as well as to provide toll-free customer service lines that are available 24 hours a day, seven days a week so that customers can get help with the services offered if they need it.

"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 superiority, and to prevent customers from being otherwise exploited, including by the conduct of other competitors in the field, MultiChoice shall introduce additional features prior to any proposed or envisaged changes in terms and conditions as identified in this Order to prevent consumers from being otherwise exploited, MultiChoice shall introduce additional features prior to any proposed or contemplated. At a bare minimum, such characteristics should include:

-         "A price lock option that allows members to keep the same monthly charge for a minimum of one year if they sign a contract that clearly spells out the terms and conditions." MultiChoice Nigeria must submit a draft of this agreement to the Commission within seven (7) days after receiving this Order.

-         "A better value for money proposition for annual subscription prepayment, with the possibility to suspend subscription at least once every quarter."

-         "Each subscriber receives clear communication about all channels accessible under their bouquet option. d. Any other value offer MultiChoice deems appropriate and acceptable, subject to adequate Commission involvement.

-         “Provide toll-free customer care lines that are available 24 hours a day, 7 days a week, and via which users can receive assistance with their use of MultiChoice Nigeria's services. These lines must be toll-free across networks, not only within them, as is the situation currently. MultiChoice Nigeria must provide the Commission with a work plan and timeline within the timeframe specified in the Commission's Order of February 4, 2022, for the purpose of articulating, and where possible and applicable, addressing any constraints with respect to complying with, and operationalizing this specific Order.

-         "Advertise the current toll-free customer assistance lines on channels available and controlled by MultiChoice on the DStv and GOtv platforms more regularly and broadly." Such advertisements must air at least once a day on each station.

-         "Increase the number of times each subscriber can cancel their subscription to at least four (4) per year."

-         "Within the time specified in the Commission's Order of February 4, 2022, submit to the Commission a compliance report indicating full compliance with the aforementioned instructions."

According to the Federal Competition and Consumer Protection Commission (Administrative Penalties) Regulations, 2020, a breach of the commission's Order would result in a fine/penalty of N5 million.

Multichoice, the pay-television powerhouse, has been at odds with various federal government agencies and high government officials in recent months, particularly over alleged subscriber exploitation.

The House of Representatives launched an investigation into Multichoice's operations in Nigeria in June 2020, citing exorbitant rates and monopolized bouquets, as well as alleged defrauding of Nigerian consumers by limiting them to prepaid plans.

Due to the group's ongoing refusal to provide FIRS access to its servers for audit, the FIRS engaged various commercial banks as agents to recover N1.8 trillion from MultiChoice Nigeria Limited (MCN) and MultiChoice Africa (MCA) accounts in July 2021.