Court rules MultiChoice’s price hike lawsuit against FCCPC is an abuse of process
The Federal High Court Abuja, led by Justice James Omotosho, has ruled against MultiChoice Nigeria, the proprietors of DStv and GOtv, dismissing their lawsuit that challenged the Federal Competition and Consumer Protection Commission’s (FCCPC) intervention regarding a recent subscription price increase.
In his judgment, Justice Omotosho declared, “This suit constitutes an abuse of court process,” emphasizing that similar legal proceedings were already underway in Lagos State. He advised MultiChoice to pursue its claims in that court, rendering the current filing inappropriate.
Discussing the role of the FCCPC, the judge noted, “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.” He also pointed out that Nigeria operates under a free market economy, allowing companies such as MultiChoice the right to set their prices, with consumers free to accept or reject them.
Justice Omotosho further stated, “The FCCPC’s actions, including directing MultiChoice to suspend its price increase, breached the company’s right to fair hearing and appeared selectively targeted.” He criticized the FCCPC’s assertion that MultiChoice held a dominant market position, describing the claim as untenable, and reinforced that the services offered by the company are non-essential, thus dispensable.
The judge cautioned against regulatory bodies attempting to fix prices, warning that such attempts could “scare off investors and harm the economy.” He affirmed that while the FCCPC has a mandate to investigate market practices, it cannot impose price controls without appropriate legal backing.
MultiChoice had raised its subscription rates by up to 25% on March 1, 2025, citing inflation and increased operational costs. The FCCPC opposed this move, advocating for a regulatory review and threatening sanctions, which led to the subsequent legal challenge from MultiChoice.
Justice Omotosho reiterated, “FCCPC must act within its powers in line with relevant laws,” asserting that proper procedure requires an investigation before any formal actions are taken against a company. He concluded that as a private enterprise within Nigeria’s free market, MultiChoice’s pricing cannot be arbitrarily restrained without a presidential directive covering the entire industry and not just targeting individual companies.
The judge also referenced a ruling from the Competition and Consumer Protection Tribunal in 2022 that reaffirmed MultiChoice’s right to adjust its prices, highlighting the consumers’ choice to explore other pay TV options. He noted that the FCCPC seems to be applying its scrutiny unfairly to MultiChoice, ignoring the competitive pricing strategies of other pay TV services and platforms like YouTube in Nigeria.
Source: Channels TV
