The Federal Competition and Consumer Protection Commission (FCCPC) says it is engaging pay television company, MultiChoice Nigeria, for clarity of the subscription fee increase announcement.
Mr Babatunde Irukera, the Executive Vice Chairman of FCCPC, said this in Abuja on Wednesday.
Irukera said the engagement was to check whether the company implemented a change in terms and conditions of in line with the Commission’s mandated steps.
According to him, our orders were broad and it will be important that compliance is prioritised.
“Although we cannot, and did not regulate price except in limited circumstances requiring presidential approval and gazetting.
“As such, our order to MultiChoice did not prevent them from pricing their services in a manner acceptable between them and their subscribers.
“We regulate price gouging. The nature of gouging is post fact, meaning that when a price movement occurs, we can investigate to determine if it is excessive, exploitative, unrestored or manifestly unjust.
“Such is a very intricate investigation and the fact of the existence of any increase is not the entire evidence.
“There is a method to analyse the increase and other circumstances leading to it.
“As in the case of pharmacies, we are prosecuting for inordinate increases of certain products during early stages of the COVID-19 pandemic.
“For now, the first check with MultiChoice is whether they implement, or intend to, a material change in terms and conditions (of which price is one) without the steps the Commission has mandated as conditions precedent,’’ he said.
MultiChoice on March 22 in a statement, announced the increase in DStv and GOtv subscription rates, blaming it on rising cost of inflation and business operations.
The rates are Xtraview +PVR access fee formerly N2,300, now N2,900, Business will now go for N2,669, Padi formerly N1,850 will now be N2,150, Yanga formerly N2,565 will now be N2,950, Confam formerly N4,615 will now be N5,300.
Also, Compact formerly N7,900 will now be N9,000, Compact Plus formerly N12,400 will now be N14,250, while Premium, which was N18,400, will now go for N21,000.
For GOtv, Max formally N3,600 will now be N4,150, Jolli formally N2,460 is now N2,800, Jinja formally N1,640 will now go for N1,900 and Lite formally N800 will now be N900.
The company said the new rates would take effect from April 1.
FCCPC had ordered the company to introduce a price lock option that allowed subscribers to maintain the same subscription fee for a minimum period of one year subject to a contractual agreement that clearly specified the applicable terms and conditions.
The Commission also directed the company to have 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.
Meanwhile, some subscribers of the DStv had lamented the subscription rates increase.
Mrs Lilian Okorie, a retired civil servant, said that if the subscription increase continued, she would change to other pay television companies like Startimes.
Mr Iliyas Yusuf, a business man, suggested that the rates be charged `pay as you go’.
