Price Hike: MultiChoice loses suit against FCCPC

By Andrew Orolua

MultiChoice Nigeria, the parent company of DStv and GOtv, on Thursday lost its law suit challenging Federal Competition and Consumer Protection Commission’s (FCCPC) intervention in its recent subscription price hike.

The company whose recent price hike on subscription packages took effect from Saturday March 1, 2025, had its suit before the Federal High Court in Abuja , dismissed on technical grounds even though the judge found merit in company complaint.

Delivering judgment on Thursday, Justice James Omotoso ruled that the suit constituted an abuse of court process as similar proceedings were already pending elsewhere. The action robbed this court of its jurisdiction to entertain the matter.

He stressed that the plaintiff should have pursued its arguments in that court, rendering the current filing procedurally inappropriate.

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However, Justice Omotoso gave his decision as follows. He noted that while the FCCPC has investigative powers under its establishing Act, it lacks the authority to fix or suspend prices unless specifically delegated by the President through a gazetted instrument. No such delegation was presented to the court.

“The power to fix prices is exclusively that of the President. Any decision taken without such delegation is a nullity,” he stated.

He added that Nigeria operates a free market system, and service providers like MultiChoice retain the right to set their prices, with consumers free to accept or reject them.

The judge further ruled that FCCPC’s actions, including directing MultiChoice to suspend its price increase, breached the company’s right to fair hearing and appeared selectively targeted.

He dismissed the FCCPC’s claim that MultiChoice held a dominant market position, calling the argument untenable.
“The use of services like those provided by the plaintiff is discretionary and not essential. Nigeria can do without it,” he added. He warned that attempts to fix prices by regulatory bodies could scare off investors and harm the economy.

The court held that while the FCCPC may investigate market practices, it cannot impose price controls without proper legal backing.

MultiChoice had increased subscription rates by up to 25% on March 1, 2025, citing inflation and operational cost pressures.

The FCCPC opposed the move and called for regulatory review.The commission also threaten sanctions, which prompted the legal challenge.