The curtain is set to fall on DStv services in Malawi as Multichoice, the parent company, decides to withdraw its offerings. This dramatic exit comes in response to a significant court ruling that bars the company from imposing further price hikes.
In a saga that began in January, the Malawi Communications Regulatory Authority (MACRA) fined Multichoice 10 million Kwacha (roughly R174,000) for raising prices in July 2022 without obtaining prior approval. The regulatory authority demanded a refund to all DStv subscribers.
A legal tussle ensued as Multichoice Malawi sought to challenge this verdict. Meanwhile, during an ongoing judicial review, MACRA secured a legal order that restrained Multichoice Malawi from adjusting its tariffs at the end of July.
This development was in response to Multichoice’s plan to increase prices in August. The court granted temporary relief to allow a reevaluation of the tariff structure until August 7.
Multichoice Confirms DStv Exit From Malawi
MACRA issued a statement, outlining that Multichoice Malawi had argued in court that its parent company, Multichoice Africa, couldn’t revert to the previous DStv tariffs. This argument hinged on the claim that such a reversal would have adverse effects on its operations in Malawi and other countries, causing significant harm to its business.
Multichoice Malawi found itself in a bind, stating that it had been compelled to raise DStv fees. It clarified that it was merely a supplier, and the ultimate pricing decisions rested with Multichoice Africa, headquartered in Dubai. The court’s order created an untenable situation, rendering normal business operations impossible. The consequences of non-compliance, including the threat of imprisonment for the company’s staff, became the catalyst for the company’s exit strategy.
In a communication directed at its subscribers, DStv Malawi issued a directive to cease payments, forewarning that all current subscribers in the nation would lose access within 30 days or sooner.
MultiChoice Africa confirmed the decision, announcing the immediate withdrawal of services from Malawi.
Source: iharare.com
