FCCPC Vs. MultiChoice Nigeria: The Legal Battle Over DStv And GOtv Price Hikes

Setting the Stage: The Federal High Court Takes on the Case

In a significant legal development, the Federal High Court in Abuja has set May 8 as the date for its ruling in the case involving MultiChoice Nigeria Limited and the Federal Competition and Consumer Protection Commission (FCCPC). This high-stakes battle has been making waves across the country, with both parties presenting compelling arguments. As reported by Naija News, Justice James Omotosho recently set the date after hearing detailed submissions from attorneys representing both sides. The courtroom drama has been intense, with each side passionately defending their position.

Understanding the Backstory

Let’s rewind a bit. Earlier, the court had issued an order that effectively prevented the FCCPC from taking any administrative action against MultiChoice Nigeria. This decision came after MultiChoice requested judicial intervention to protect itself from potential penalties due to a recent increase in subscription prices for its DStv and GOtv services. The company argued that these price adjustments were necessary given the current economic climate and should not be considered punitive measures.

During the proceedings, the court acknowledged the FCCPC's request for more time to organize its processes. Simultaneously, MultiChoice decided to withdraw its application for an interim injunction, recognizing that circumstances had evolved since the initial filing. This strategic move allowed the case to progress without unnecessary delays, ensuring that both parties could present their strongest cases.

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MultiChoice's Perspective: A Matter of Regulatory Authority

MultiChoice, represented by attorney Onigbanjo, raised a critical question: "Does the FCCPC have the authority to dictate pricing for private companies like MultiChoice?" While conceding that the FCCPC plays a vital role in regulating the market, Onigbanjo emphasized that the Commission’s mandate does not extend to controlling prices or preventing companies from adjusting their rates. He argued that the FCCPC’s establishment legislation does not grant it the power to intervene in such matters, leaving businesses free to respond to market forces.

Interestingly, Onigbanjo pointed out that this issue has been debated before, with the Tribunal ruling that the FCCPC lacks the authority to regulate prices nationwide, except under specific directives from the President. Furthermore, he highlighted that even the President has expressed that his administration does not believe in price control, instead trusting market forces to determine fair pricing. MultiChoice questioned the FCCPC's authority, stating, "If the FCCPC doesn’t have the power to control prices, where does it get the authority to prevent us from increasing ours?"

Accusations of Discrimination

MultiChoice further accused the FCCPC of unfair treatment, alleging that numerous businesses across Nigeria have adjusted their prices in response to economic pressures and inflation without facing scrutiny. According to MultiChoice, the Commission’s focus on their price hike seems arbitrary and unjustified. Onigbanjo urged the court to grant all the requested reliefs, emphasizing that MultiChoice’s actions were both reasonable and necessary.

The FCCPC's Counterargument: Protecting Consumers

On the other side of the bench, Professor Joe Agbugu, SAN, representing the FCCPC, urged the court to focus on the root cause of the dispute—the increase in DStv and GOtv prices. He revealed that the Commission wrote to MultiChoice on February 25, following an announcement of a price hike effective March 1, 2025. When MultiChoice requested a postponement of a scheduled meeting, the FCCPC urged them to hold off on the price increase until the matter could be thoroughly investigated.

Agbugu clarified that the FCCPC’s role is not to regulate prices but to ensure that companies do not exploit their dominant market position to the detriment of consumers. He argued that the Commission has the legal authority to investigate and challenge pricing that appears exorbitant or abusive. “The Commission is not telling MultiChoice what price to charge,” Agbugu explained, “but rather ensuring that the prices are not exploitative.”

He further stated that MultiChoice’s dominance in the television and entertainment industry makes it particularly vulnerable to accusations of abuse of market power. The FCCPC’s mandate, he emphasized, is to protect consumers from unfair practices, including excessive pricing. Agbugu dismissed claims of discrimination, arguing that MultiChoice’s position in the market justifies closer scrutiny.

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The Final Word: Justice Omotosho's Ruling

After hearing both sides, Justice Omotosho announced that the court would deliver its judgment on May 8. The outcome of this case could have far-reaching implications, not only for MultiChoice and the FCCPC but also for the broader business environment in Nigeria. The court’s decision will likely clarify the boundaries of the FCCPC’s authority and set a precedent for future disputes involving consumer protection and corporate pricing policies.