MultiChoice subscription hike: Court affirms FCCPC’s power to investigate exploitation

The Federal High Court in Abuja on Thursday affirmed the power of the Federal Competition and Consumer Protection Commission (FCCPC) to investigate the recent MultiChoice subscription hike in Nigeria or any other companies suspected of being involved in exploitative pricing practices.

The Court, according to a statement by Ondaje Ijagwu, the Director, Corporate Affairs, on Thursday, “struck out the suit filed by MultiChoice Nigeria Limited seeking to restrain the FCCPC from investigating its recent price increases for DStv and GOtv services, declaring it an abuse of court process.

“The court, presided over by Justice James Omotosho, ruled that MultiChoice’s suit was duplicative and improper, given the existence of a similar matter involving the same parties pending before another court.

“Consequently, the Court struck out the application in its entirety”.

The statement recalled that Multichoice had defied FCCPC’s invitation in February and proceeded to hike subscription rates barely eight months after similar increase.

“Instead, the cable service provider filed an application to restrain the Commission from asking questions as to the rationale behind its incessant price increase.

ALSO READ: MultiChoice vs FCCPC: Only President has power to fix prices, Court rules

“In his ruling, Justice Omotosho went further to affirm key provisions of the FCCPA 2018 regarding price regulation and the scope of the Commission’s mandate.

“The FCCPC’s legal team was led by Prof. Joseph Abugu (SAN), while Mr.  J. Onigbanjo (SAN) led the MultiChoice’s team.

“The Court recognised that Section 88 of the FCCPA vests the President of the Federal Republic of Nigeria with the authority to regulate the prices of goods and services when necessary. It also affirmed that the President may delegate this authority to any agency, particularly the FCCPC, for enforcement.

“The Court further upheld that, under Section 17 of the FCCPA, the FCCPC is empowered to investigate exploitative pricing practices and to submit its findings, data, and recommendations to the President to inform decisions on price regulation.

“Additionally, the Court confirmed that once the President declares specific goods or services as subject to price regulation, the FCCPC possesses full enforcement powers to implement such regulations.”

Furthermore, the statement noted that in a swift reaction, the Executive Vice Chairman/Chief Executive Officer of the Commission, Mr. Tunji Bello, described the ruling as an affirmation of the rule of law and a significant step towards curbing procedural tactics aimed at obstructing lawful regulatory oversight.

“It sends a clear message that regulatory agencies will not be hindered by procedural roadblocks when exercising their lawful mandate to ensure fairness, transparency, and accountability in the marketplace,” he stated.

According to him, “Nigerian consumers can be assured that the Commission is fully committed to investigating and addressing exploitative pricing and other anti-consumer practices, in line with the provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018.”

ALSO READ TOP STORIES FROM NIGERIAN TRIBUNE