…affirms FCCPC authority to investigate exploitative market practices
…strikes out MultiChoice’s suit against FCCPC
The Federal High Court sitting in Abuja on Thursday ruled over a dispute between the Federal Competition and Consumer Protection Commission (FCCPC) and MultiChoice Nigeria over the recent hike in subscription fees for DStv and GOtv services, declaring that only the President has the power to fix or suspend prices in Nigeria.
The trial Judge, Justice James Omotosho, ruled that the suit filed by MultiChoice Nigeria constituted an abuse of court process as similar proceedings were already pending elsewhere, adding that the plaintiff should have pursued its arguments in that court, rendering the current filing procedurally inappropriate.
Justice Omotosho 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 and held that such delegation was not presented to the court.
“The power to fix prices is exclusively that of the President. Any decision taken without such delegation is a nullity,” the Judge held and 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 and warned that attempts to fix prices by regulatory bodies could scare off investors and harm the economy of the country.
The court held that while the FCCPC may investigate market practices, it cannot impose price controls without proper legal backing.
MultiChoice Nigeria, the parent company of DStv and GOtv, announced a price hike on March 1, 2025, citing inflation and rising operational costs. The adjustments saw subscription fees increase by up to 25% across various packages.