Court sets date for MultiChoice-FCCPC price hike ruling

Ayomide Ogunsakin
3 Min Read

By Hassanat Adebowale

 

The Federal High Court in Abuja has scheduled May 8, 2025, as the date to deliver judgment in a suit filed by MultiChoice Nigeria Limited against the Federal Competition and Consumer Protection Commission (FCCPC). The pay-TV company is seeking to prevent the FCCPC from imposing sanctions over its recent hike in DStv and Gotv subscription rates.

Justice James Omotosho fixed the judgment date after the lawyers for both parties presented their arguments and adopted court filings during Thursday’s proceedings. MultiChoice was represented by Moyosore Onigbanjo, SAN, while the FCCPC’s case was argued by Prof. J.E.O. Abugu, SAN.

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The controversy began after FCCPC summoned MultiChoice to explain its March 1 subscription price increase. Concerns were raised about frequent tariff hikes, potential market dominance, and anti-competitive practices in the pay-TV sector. The commission directed MultiChoice’s chief executive officer to appear for an investigative hearing on February 27. It warned that failure to justify the price adjustments or align with fair market principles would lead to regulatory action.

In response, MultiChoice filed an ex parte motion on March 3, seeking an interim injunction to restrain FCCPC from taking any action against the company while the case is still being heard. Justice Omotosho granted the request on March 12, temporarily barring FCCPC from penalizing the pay-TV operator until the substantive suit is resolved.

Through its legal team, MultiChoice also sought additional injunctions to prevent the commission from issuing directives or taking steps that could disrupt its business operations. “An order of interim injunction restraining the FCCPC, its agents, servants, or privies from sanctioning or penalizing MultiChoice (the applicant) in any manner whatsoever in relation to its price increase pending the hearing and determination of the motion for an interlocutory injunction,” the court filing stated.

The case has drawn significant attention, as it highlights the tension between regulatory oversight and corporate autonomy in Nigeria’s pay-TV industry. The court’s upcoming judgment will likely set the tone for future interactions between the FCCPC and service providers over pricing disputes and consumer protection.

GI’s Legal Corner

The FCCPC Act grants the commission the authority to regulate competition across various industries, including the pay-TV sector. Although companies like MultiChoice are private businesses, they must still comply with consumer protection laws designed to curb unfair trade practices, excessive pricing, and abuse of market dominance.

However, the issue of price control remains a contentious one, as the law does not explicitly prohibit price increases but mandates that companies justify their pricing policies to prevent exploitation. The outcome of this case could set an important precedent for how subscription-based services handle price adjustments in the future and the extent to which the FCCPC can intervene in disputes over pricing policies.

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