Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has completed an investigation into allegations of abuse of dominant position that were levelled against MultiChoice Nigeria, a subsidiary of South African Pay-TV company — MultiChoice Group.
MultiChoice is the operator of DStv which is used by millions of Nigerians. For years, many people have complained about the company’s alleged “monopolistic tendencies”, including its constant and random price increases.
The FCCPC said the complaints prompted its investigation into the company. In the course of the investigation, the consumer protection agency said it obtained relevant information from MultiChoice, including information about its market share, pricing, distribution network and more.
The agency further disclosed that it obtained information from other sources and analysed everything before arriving at its final submissions which have been communicated to the company.
“For the purpose of ensuring that any material change in key terms with respect to value proposition 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,” said a part of the statement by the company which was seen by Business Insider Africa.
Below are the specific features that MultiChoice Nigeria has been ordered to introduce.
- MultiChoice must introduce a price lock option that allows customers to maintain the same subscription fee for one year. The company must submit a draft copy of the proposed feature/agreement within the next seven days.
- The company must ensure to guarantee better value for money for annual repayment, including giving costumers the ability to suspend their subscription once every quarter.
- All the channels available in every bouquet must be clearly communicated to customers.
Meanwhile, the FCCPC also ordered MultiChoice Nigeria to introduce a toll-free line which must operate for 24 hours daily, to help customers resolve any issues they may have.
The said toll-free line must be advertised through all MultiChoice channels so that customers can get familiar with it.
Again, the agency emphasised that MultiChoice must increase the number of times customers can suspend their subscription to at least four times per annum.
Finally, MultiChoice must submit a compliance report to the FCCPC.
