A Nigerian court has said MultiChoice's has to stick to the injunction after the pay-TV operator brought an appeal application to set aside a temporary injunction, granted last week, prohibiting MultiChoice Nigeria from going ahead with its latest DStv price hike that came into effect since August.
In August, MultiChoice Nigeria increased DStv Nigeria subscribers' monthly subscription fees for the first time since May 2017.
DStv Nigeria subscribers using the service of Naspers' pay-TV arm in the West African country are still paying the least in sub-Saharan Africa for the same content, compared to what DStv subscribers in South Africa and elsewhere in Africa have to pay and where price hikes happen like clockwork annually, despite having better economies and stronger currencies.
Although Naspers' DStv and GOtv pay-TV services are non-essential, luxury services, many consumers - including in Nigeria - have developed a warped consumer mindset where they perceive having DStv or GOtv in their homes as a must-have necessity, like basic services.
Although in theory a free-market economy, Nigeria's sliding economy with it's constantly weakening naira currency, now seems set to want to legislate what private companies, providing private services or products, are "allowed" to charge customers - for instance what a Gucci bag or an Emirates flight ticket in Lagos might be priced at.
Nigeria that struggles with a rampant inflation rate currently at 19%, and the ongoing weakening of the naira, wants to force private companies not to charge what a consumer market will freely bear or reject, but rather legislate blatant artificial price fixing.
This is something that is going to drive private multinational companies away from Nigeria as a possible investment destination and give international companies that have not yet fled the nation's tanking economy pause as to whether they should continue to invest in Nigeria.
Meanwhile biased and uninformed naija press, marinating in the public hate-stew that's been building against MultiChoice Nigeria the past few years, are salivating over running salacious headlines since last week like "MultiChoice battles Nigeria".
Last week Nigeria's belligerent and corrupt Consumer Protection Council (CPC) got a temporary injunction against MultiChoice Nigeria on 23 August, forcing the company to somehow halt its subscription increase weeks after it already went into effect.
Nigeria's Consumer Protection Council has done nothing to improve Nigeria's rampant, daily electricity blackouts or to address exorbitant data and cellphone service prices, but continues to target MultiChoice Nigeria.
Yet Judge Nnamdi Dimgba of the Federal High Court Abuja granted the injunction, saying that "the interim injunction restraining MultiChoice Nigeria or its agents and representatives was to halt its continuing implementation of any increase in subscription rates or price review policy imposing increased charges and costs on the consumers".
This past Friday, MultiChoice Nigeria spokesperson Caroline Oghuma said the injunction by the CPC is "an affront to the free market economy" and that MultiChoice Nigeria is filing a notice of appeal.
"In light of the application for a stay of execution, the status quo therefore prevails," said MultiChoice Nigeria, saying the price increase will remain in effect. "MultiChoice Nigeria will always operate within the ambit of the law and will continue with the authorities to ensure the best outcome for our customers."
"We remain committed to providing the best quality of entertainment and premium content at the best possible prices."
Babatunde Irukera, director-general of Nigeria's CPC, told Judge Nnamdi Dimgba on Tuesday that MultiChoice Nigeria said publicly that it refused to comply with the injunction.
"The evidence is that the defendant has declined to comply with the order of the court. In a public statement, MultiChoice characterized the court order as an affront, and repeatedly said to subscribers who tried to renew their subscriptions pursuant to the court order that it will not, and has no intention of obeying the order."
On Tuesday Judge Nnamdi Dimgba about MultiChoice Nigeria's appeal application to have the injunction set aside, said "my order is in force. I believe it is in force until it is set aside. My order has to be obeyed. That is my position."
The matter has been adjourned to 3 September.
