Controversial Clash: Multichoice Malawi Faces Regulatory Battle Amid DStv Service Withdrawal
Multichoice Malawi faces legal action after implementing tariff adjustments without approval from the Communications Authority, resulting in service withdrawal.
LILONGWE, Malawi-Multichoice Malawi (MCM) is embroiled in a legal battle with the Malawi Communications Regulatory Authority (MACRA) over tariff adjustments that were implemented without prior approval, resulting in the abrupt withdrawal of DStv services in the country, writes Winston Mwale.
The dispute, according to MACRA, stems from MCM's decision to implement tariff adjustments on June 3, 2022, without obtaining the necessary authorization from MACRA.
MACRA subsequently notified MCM of a preliminary breach finding on June 28, 2022, citing violations of the Communications Act and MCM's Subscriber Management Services (SMS) licence.
MCM filed a lawsuit against MACRA in an attempt to challenge the preliminary breach finding, but the High Court dismissed the case on July 25, 2022.
MACRA's Legal and Administration Committee (LAC) then recommended a final breach finding, which was endorsed by the MACRA Board on December 22, 2022.
As a result of the final breach finding, MCM was fined K10 million and directed to halt the implementation of the unapproved tariff structure, as well as refund customers for the tariff discrepancy.
Despite these developments, MCM announced a tariff increase for DStv services, effective August 1, 2023.
MACRA then responded by obtaining a restraining injunction from the High Court on July 28, 2023, preventing MCM from implementing the tariff hike.
The abrupt withdrawal of DStv services has left many Malawians without access to their favourite entertainment programming.
This development has sparked broader discussions concerning the challenges of regulating international subscription services within the nation.
In a letter to the Minister of Information & Digitization and the Minister of Finance, Dr Keabetswe Modimoeng, Group Executive of Corporate Affairs & Stakeholder Relations at MultiChoice Africa Holdings (MAH), expressed regret for the inconveniences stemming from the service withdrawal.
Dr. Modimoeng outlined that the decision to withdraw services was influenced by "the legal risks posed to the local subscription management service (SMS) provider, MCM, as well as the overall regulatory hostility and uncertainty that impacts the investment environment and growth of the business in Malawi”.
He noted that while MAH has been providing DStv services since 1996 as an international subscription audio-visual entertainment service, regulatory complications arose due to the conflation of MCM's role with that of MAH.
The crux of the regulatory challenges, according to Dr Modimoeng, stemmed from MACRA's attempts to extend its jurisdiction beyond the existing licensing framework, leading to legal battles and the imposition of remedies on MCM without a sound basis or consideration of consequences.
Furthermore, proposed content regulations seeking to introduce licencing for multinational foreign broadcasters exacerbated the situation, adding to MAH's concerns, he said.
Dr. Modimoeng conveyed MAH's commitment to resolving the ongoing issues with MACRA and finding a sustainable solution to the existing regulatory complexities.
He outlined a proposed path forward that includes reestablishing proper regulation of MCM as an SMS provider, initiating consultation for regulating international broadcasting services, and allowing MAH to continue services at prevailing tariffs until regulatory reviews are concluded.
As the aftermath of the DStv service withdrawal unfolds, discussions about the feasibility of effectively regulating international subscription services in Malawi persist.
Amid these intricacies, the entertainment landscape in the nation faces an uncertain trajectory.
This country eshi🥱