Business

Multichoice ends DStv service in Malawi after court opposed price increase

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2 years ago

Multichoice has announced its decision to end its DStv services in Malawi following a high court ruling opposing the company’s decision to increase price for DStv service.

MultiChoice announced the decision yesterday .

MultiChoice last month hiked DStv tariffs but Malawi Communications Regulatory Authority (MACRA) obtained an injunction against the hike and Multichoice Malawi (MCM) obtained a stay in order to allow it to comply with the injunction.

MACRA had earlier in July obtained from the country’s High Court an interim injunction preventing Multichoice from changing.

The same court yesterday, August 8th 2023, ordered Multichoice to comply with the interim order.

As a result multichoice has decided to end its DStv offering in Malawi.

MACRA’s injunction was premised on the fact that because Multichoice did not directly offer the DStv service to the public, it could not set or adjust tariffs for the service in the country.

Multichoice believes that the court order makes business impossible. And the consequence of non-compliance, which included imprisonment for the company’s staff, led to the decision to exit the market.

“Given the impact on Multichoice Malawi and an increasingly adverse regulatory environment, [Multichoice] is therefore left with no option but to terminate DStv services indefinitely,” the company said.

It adds that the company will not accept new subscriptions or reconnections starting tomorrow 9 August and all ongoing subscriptions will be honoured until September 10.

Meanwhile, MACRA through Director General Daud Suleman has said in a statement that it expects MCM to implement the court order without delay since any person who disobeys the court order may be charged with contempt of court.

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