Home Judiciary & CrimeCourt dismisses MultiChoice’s suit against FCCPC

Court dismisses MultiChoice’s suit against FCCPC

by Tobi Benson
0 comments

JUSTICE James Omotosho of the Federal High Court in Abuja has dismissed a lawsuit filed by MultiChoice Nigeria—owners of DStv and GOtv—challenging the Federal Competition and Consumer Protection Commission’s (FCCPC) intervention in its recent subscription fee increase.

In his ruling, Justice Omotosho stated that the case was an abuse of court process, as a similar matter was already pending before a Lagos court.

He emphasized that the company should have pursued its claims there, making the Abuja filing inappropriate.

The judge clarified that while the FCCPC has the authority to investigate market conduct, it lacks the legal mandate to set or suspend prices unless explicitly empowered by the President through an official, gazetted directive. No such delegation of authority was presented to the court.

Nigeria’s market system, Justice Omotosho noted, operates on free-market principles, allowing service providers like MultiChoice to determine their prices, with consumers free to accept or reject the offerings.

He ruled that the FCCPC’s directive instructing MultiChoice to halt its price adjustment violated the company’s right to a fair hearing and appeared to be selectively enforced.

He also rejected the Commission’s argument that MultiChoice holds a dominant market position, asserting that such services are non-essential and that Nigerians can do without them.

The court warned that arbitrary price regulations by government agencies could deter investment and negatively impact the economy.

Justice Omotosho also reiterated that only the President has the constitutional authority to regulate prices or establish a price control board, and this power cannot be transferred without a formal instrument.

MultiChoice had raised its subscription fees by up to 25% on March 1, 2025, citing inflation and increased operational costs. The FCCPC opposed the move and attempted to halt it, prompting the legal battle.

The judge criticized the FCCPC’s approach, stating that it had not initiated a formal investigation before directing MultiChoice to reverse its decision.

He reiterated that regulatory bodies must act within the limits of the law and cannot assume powers not granted by legislation.

Justice Omotosho concluded that MultiChoice’s pricing decisions, as a private entity in a free economy, can only be overridden through a lawful directive from the President and must apply industry-wide—not to a single company alone.

He recalled a 2022 ruling by the Competition and Consumer Protection Tribunal affirming MultiChoice’s right to revise its pricing and recognizing the consumer’s freedom to choose other pay-TV options.

The court also noted that the FCCPC appeared to unfairly single out MultiChoice, overlooking similar pricing practices by other platforms such as other pay-TV providers and streaming services like YouTube.

You may also like

Naija Times