MultiChoice Africa Holdings (MAH) has suspended DStv services in Malawi due to an ongoing pricing dispute with the Malawi Communications Regulatory Authority (MACRA).
Last month, MultiChoice increased the subscription fees for its DStv packages, prompting MACRA to secure an injunction against the tariff hike. In response, Multichoice Malawi (MCM) obtained a “stay order” to comply with the injunction.
MultiChoice argued that DStv services are not offered by MCM, but rather by MultiChoice Africa Holdings. Consequently, MCM could not fully adhere to the injunction’s requirements.
The High Court has now upheld the MACRA injunction, leading to Multichoice suspending its services.
“MCM does not provide the DStv service to the general public and therefore lacks the authority to set or modify tariffs for this service, a point that has been repeatedly communicated to MACRA,” said Multichoice Africa in a statement. It continued that while the order issued to MCM cannot be practically carried out by MCM, it also carries serious implications for the directors and management of Multichoice Malawi, including potential imprisonment.
Multichoice says it has no alterative other than to halt the acceptance of new subscriptions.
Current subscriptions will remain active until September 10.
Meanwhile, MACRA director-general Daud Suleman, has issued a statement asserting that it expects MCM to promptly implement the court’s order, as any failure to comply could result in charges of contempt of court against the responsible parties.
