Nigeria Data Protection Commission Imposes Heavy Fine on MultiChoice Nigeria
The Nigeria Data Protection Commission (NDPC) has imposed a significant penalty of N766.24 million on MultiChoice Nigeria, the parent company of DStv and GOtv, for violating data privacy laws. The fine was issued following an investigation that revealed serious breaches of the Nigeria Data Protection Act (NDP Act), including the improper processing of personal data belonging to both subscribers and non-subscribers.
According to a statement released by Babatunde Bamigboye, the Head of Legal, Enforcement and Regulations at NDPC, the investigation began in the second quarter of 2024. It focused on potential violations of data privacy rights and unlawful cross-border transfers of personal information involving Nigerian citizens. The commission found that MultiChoice had engaged in practices that were intrusive, unfair, and disproportionate, thereby infringing on the fundamental right to privacy as outlined in Section 37 of the 1999 Constitution.
The NDPC emphasized that the depth of data processing conducted by MultiChoice was not only unnecessary but also violated the principles of data protection. This breach of trust raised concerns about the safeguarding of citizens' data and the implications for national security, economic growth, and the rule of law.
In response to the findings, the NDPC directed MultiChoice to implement appropriate remedial actions. However, the commission concluded that the measures taken by the company were unsatisfactory. As a result, the fine was imposed to ensure compliance with the legal framework governing data protection in Nigeria.
Compliance Audit Ordered
As part of the ongoing investigation, the NDPC has mandated a compliance audit of all data collection channels used by MultiChoice in Nigeria. This audit aims to ensure that the company adheres to the provisions of the NDP Act and addresses any gaps in its data handling practices.
Vincent Olatunji, the National Commissioner of the NDPC, highlighted the importance of strict adherence to data protection laws. He stated that any organization found guilty of processing personal data in violation of the law will face sanctions as stipulated by the legislation.
New Subscription Model Introduced
In addition to the regulatory actions against MultiChoice, the company has been exploring new subscription models to better align with customer needs. Reports indicate that MultiChoice has started testing weekly subscription plans in Uganda. If the trial is successful, this model may be expanded to other markets.
Calvo Mawela, CEO of the MultiChoice Group, revealed that the weekly subscription option was introduced seven weeks ago. He mentioned that the company expects to have a clearer understanding of the trial's success within the next six months. The initiative aims to provide customers with more flexibility, especially in regions where cash flow can be a challenge.
This shift in subscription strategy reflects a growing trend among service providers to offer more tailored options that meet the evolving demands of consumers. By introducing weekly plans, MultiChoice seeks to enhance customer satisfaction and potentially increase market penetration in key regions.
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