Alleged N2billion Revenue Loss: MultiChoice Nigeria Petitions EFCC Against Indigenous Rival Amid Ongoing Legal Dispute | Sahara Reporters

It also accused the indigenous platform of obtaining and retransmitting signals allegedly originating from a network connected to Eutelsat at 7 degrees.

A document has revealed that MultiChoice Nigeria Limited, operator of DStv and GOtv, petitioned the Economic and Financial Crimes Commission (EFCC) over allegations against indigenous pay-TV operator, Moreplex TV, escalating an already contentious dispute between the two firms.

The two-page petition, addressed to the Zonal Director of the EFCC in Ilorin, Kwara State, was signed by Umar Ibrahim Abdulaziz, Head Anti-Piracy, MultiChoice Nigeria.

In the petition sent to SaharaReporters, titled “Petition Against Moreplex TV Ltd for Economic Sabotage, Tax Evasion … Criminal Interception of Signals Contrary to Section 12 of the Cyber Crimes Act, and Intellectual Property Fraud,” it alleged that Moreplex TV had accessed and re-broadcast certain MultiChoice content and signals without authorisation.

MultiChoice alleged in the document that Moreplex TV was operating in a manner that allegedly deprived it of revenue and tax obligations, putting the alleged loss at over ₦2billion.

It also accused the indigenous platform of obtaining and retransmitting signals allegedly originating from a network connected to Eutelsat at 7 degrees.

However, the petition has raised fresh questions as it emerged against the backdrop of a long-running civil and commercial dispute between the two pay-TV operators over access to television channels and alleged exclusivity.

Available reports on the dispute indicate that Moreplex TV instituted proceedings at the Federal High Court, Port Harcourt Judicial Division, challenging MultiChoice’s refusal to sublicense certain channels and alleging breaches of the Nigerian Broadcasting Code.

In the case filed in 2023, but judgement delivered on 8 March 2024, Justice Phoebe M. Ayuba reportedly ruled in favour of Moreplex TV, declaring MultiChoice’s refusal to sublicense the requested channels unlawful and contrary to provisions of the Broadcasting Code.

The court reportedly ordered MultiChoice to sublicense the channels and awarded ₦200million in general damages, with 10 percent post-judgment interest.

Analysts said the dispute therefore goes beyond a simple allegation of signal piracy. They noted that it touched on a broader question about competition, access to premium television content and the regulatory framework governing Nigeria’s pay-TV industry.

Moreplex had said it had positioned itself as an indigenous alternative in Nigeria’s pay-TV market, offering DTH, DTT, VOD and other television services. Its current platform lists a broad range of local and international channels, including several SuperSport-branded channels.

The EFCC petition has hence generated concerns over the use of criminal enforcement mechanisms in what has, at its core, involved a civil, commercial and regulatory disagreement.

A source said, “The key issue is not whether allegations of copyright infringement, unlawful signal interception or tax offences should be investigated where credible evidence exists. Rather, the question being raised is whether a commercial dispute that has already been litigated before a competent court should subsequently become the subject of criminal proceedings in circumstances that could potentially affect the outcome of the underlying commercial battle.”

“The document itself shows that MultiChoice approached the EFCC alleging criminal conduct by Moreplex. The allegations contained in the petition are allegations, not findings of guilt, and would have to be established through due process.”

It was learnt that nevertheless, the apparent speed with which criminal proceedings were subsequently pursued against Moreplex, as stated by persons familiar with the dispute, has heightened concerns about whether Nigeria’s criminal justice and regulatory institutions are being deployed fairly in disputes involving large established corporations and emerging indigenous competitors.

The controversy also comes at a time when Moreplex has presented itself as an indigenous challenger seeking to compete in a market historically dominated by major operators.

Moreplex’s management has previously argued publicly that Nigeria needs stronger competition in the pay-TV sector and has called for regulatory intervention against what it describes as monopolistic practices.

The company had described itself as a Nigerian/African-oriented pay-TV platform seeking to provide alternatives to consumers through flexible pricing and a combination of local and international programming.

Analysts further noted that if an indigenous operator is facing criminal proceedings arising from conduct connected to a commercial dispute over access to content, the question will inevitably be whether competition policy, broadcasting regulation, copyright enforcement and criminal law are being properly separated and applied consistently.

One of the sources said, “The leaked document therefore raises questions that deserve clear answers from the relevant authorities; How did Multichoice come up with the N2billion number ascribed solely to Moreplex TV since there is another company that has smilar judgement and is also operating in a similar way?

“How did Multichoice come up with tax evasion petition against Moreplex TV? What proof did they present to EFCC before EFCC swung into action? ⁠If there is an established case of tax evasion, why is it not NRS that is investigating?

“Should a corporate organisation be allowed to use public institutions of law to gain advantage in a civil dispute? There is still unanswered question why the Multichoice petition was made at the EFCC Ilorin office at 10 Oko Street, off Station Road, GRA Ilorin Kwara State instead of in Lagos where Multichoice has its head office and Moreplex TV has an office. Was Multichoice looking for a favourable and willing unit of the EFCC?

“In an answer to a human rights case filed against EFCC regarding this matter, the EFCC contended that they would wait for the court of appeal for the resolution of the contents rights dispute. How come the EFCC in Ilorin went to a lower court to file criminal charges against Moreplex TV regarding the same content rights?”

Overall, stakeholders believe that for Nigeria’s rapidly evolving broadcasting industry, the case could ultimately become a test of whether competition, intellectual-property protection, regulatory enforcement and the rule of law can coexist without undermining the growth of indigenous businesses.