DStv: Court can’t fix subscription rates

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Following the court rule restraining Multichoice Nigeria Limited, owners and operators of Digital satellite Television – DStv, from implementing its new rate, the company reacted saying that in free market economy, courts cannot fix subscription rates for business operations.

The company said its refusal not to reverse its new rates is in order since the rates had become operational on April 1 and the interim injunction restraining it from enforcing an increase in its subscription rates was issued on April 2. Stating that it was served with the court order a few days after it had enforced its price increase.

The company said it received the orders on 8 April, seven days after it had effected the rate increase.

“MultiChoice thus reiterates that it is not in breach of or disobeying the order of interim injunction made by the Federal High Court on 2nd April 2015,”

It added that the contract agreement between MultiChoice and all its subscribers explicitly states that MultiChoice reserves the right to change prices and channels.

This fact, it said, was not disclosed to the court before the orders of interim injunction was obtained. The company’s lawyers have filed processes challenging the court’s jurisdiction to entertain the matter and seeking to set aside the interim injunction on several grounds.

One of these is whether a court is legally empowered to fix prices for a private concern such as MultiChoice in a free-market economy.

Source – Leadership

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