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Court Upholds MultiChoice Subscription Price Hikes

Published 1 month ago3 minute read
Court Upholds MultiChoice Subscription Price Hikes

A Federal High Court in Abuja has ruled that the Federal Competition and Consumer Protection Commission (FCCPC) lacks the authority to suspend or fix subscription prices for MultiChoice Nigeria, the parent company of DStv and GOtv. Justice James Omotoso presided over the case, dismissing MultiChoice's suit against the FCCPC's challenge to the subscription price hike, citing similar proceedings pending in another court.

MultiChoice had increased its subscription prices by up to 25% on March 1, 2025, marking the second price increase in less than a year. The company attributed these hikes to inflation and rising operational costs. The FCCPC opposed the move, calling for regulatory review and threatening sanctions, eventually taking the matter to the Federal High Court in Lagos.

Justice Omotoso ruled that MultiChoice's suit was an abuse of court process, stating the company should have presented its arguments in the court where similar proceedings were already underway. He emphasized that while the FCCPC has investigative powers, it cannot fix or suspend prices without explicit delegation from the President through a gazetted instrument, which was not presented in court.

The judge stated that Nigeria operates a free market system, allowing service providers like MultiChoice to set their prices, with consumers having the choice to accept or reject them. He also found that the FCCPC's actions, including directing MultiChoice to suspend its price increase, violated the company’s right to a fair hearing and appeared selectively targeted.

Justice Omotoso dismissed the FCCPC’s claim that MultiChoice holds a dominant market position, deeming the argument untenable. He added that services provided by MultiChoice are discretionary and not essential, and warned that regulatory price-fixing could deter investors and harm the economy. The court concluded that while the FCCPC can investigate market practices, it cannot impose price controls without proper legal backing.

Earlier, on February 24, MultiChoice announced the subscription price increase for DStv and GOtv packages, effective from March 1. This announcement prompted public criticism and intervention from the FCCPC, which summoned MultiChoice's CEO for an investigative hearing on February 27. MultiChoice requested a postponement to March 6 and proceeded with the price increase, leading to the lawsuit filed on March 3. The court granted an ex parte order on March 12, temporarily restraining the FCCPC from taking administrative actions against MultiChoice Nigeria.

In his judgment, Justice Omotoso reiterated that the FCCPC lacks the authority to fix or suspend prices without presidential delegation through a gazetted order. He emphasized that the power to fix prices rests exclusively with the President, and any decision without such delegation is invalid.

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