A pay TV operator headquartered in South Africa, MultiChoice, has taken the decision to temporarily cease its DStv service operations in Malawi. This move comes as a response to an injunction that restrains its local subsidiary from modifying the pricing structure of the DStv service.

MultiChoice Africa Holdings (MAH) stated that their choice was influenced by an injunction put forth by the High Court in Lilongwe. This legal matter emerged from a dispute involving MultiChoice Malawi (MCM) and the Malawi Communications Regulatory Authority (MACRA). The court order prevents any alteration to the tariffs associated with the DStv service.

MAH has maintained that its local subsidiary is not vested with the authority to determine the pricing of the service, as this responsibility rests with the parent company independently. It's important to note that MultiChoice Malawi does not provide the DStv service to the general public in Malawi. Instead, the local entity oversees the digital-terrestrial GOtv service. For the latter, MultiChoice Malawi sought and obtained approval from the regulatory body for modifications to pricing.

Having consistently argued that the operations in Malawi were not responsible for the DStv service, MAH has conveyed that its subsidiary lacks the capability to comply with the court order mandating the implementation of MACRA's pricing directive.

It declared it was pulling DStv out of the nation because disobeying may result in "grave consequences for the directors and management of MultiChoice Malawi, including imprisonment."

Since failure to comply could have “grave consequences for the directors and management of MultiChoice Malawi, including imprisonment”, it said it was withdrawing DStv from the country.

The DStv service will be recognized for customers who have already paid their new membership fees up until the current 30-day viewing cycle expires on or before September 10, 2023. No new memberships or reconnections will be permitted after Wednesday, August 9, 2023.

The injunction was first imposed on July 31, but MultiChoice Malawi was successful in obtaining a stay of injunction, which was then extended until last Friday.

MultiChoice's primary area of expansion outside of its home market of South Africa is the Rest of Africa segment. Inflation increased expenses and put pressure on its client base, which had a negative effect on its success in the South African market.