Business
Court Sets Judgment Date On Multichoice Price Hike
By Gideon Ayeni
The Federal Competition and Consumer Protection Commission (FCCPC) has clarified that its legal action against MultiChoice Nigeria is not about controlling prices but addressing alleged exploitative practices and abuse of market dominance by the pay-TV company.
This comes as the Federal High Court in Abuja fixed May 8, 2025, for judgment in the ongoing case.
During Thursday’s hearing, FCCPC’s counsel, Prof. J.E. Agbugu, made this clarification in response to arguments from MultiChoice’s lead counsel, N.J. Onigbanjo (SAN), who maintained that Nigeria operates a free-market economy where service providers are not required to seek regulatory approval before adjusting prices.
Background of the Case
The dispute began after MultiChoice raised subscription fees for its DStv and GOtv packages by up to 25% on March 1, 2025, citing inflation and rising operational costs.
The new pricing structure saw:
DStv Compact move from ₦15,700 to ₦19,000
Compact Plus from ₦25,000 to ₦30,000
Premium from ₦37,000 to ₦44,500
GOtv Supa Plus from ₦15,700 to ₦16,800
Following the announcement, the FCCPC directed MultiChoice to suspend the price hike pending regulatory review, but the company proceeded with the increase, leading to the legal showdown.
FCCPC vs. MultiChoice: Key Arguments
During the hearing, Onigbanjo argued that the FCCPC lacks the legal authority to regulate prices, emphasizing that Nigeria operates a free-market economy. He also stated that MultiChoice had formally notified the FCCPC of its planned price review in a February 21, 2025, letter, before the commission issued its suspension directive on February 27.
Onigbanjo further accused the FCCPC of selectively targeting MultiChoice, pointing out that other service providers had also increased prices due to economic pressures.
However, Agbugu countered by stating that the FCCPC Act empowers the commission to investigate price increases and protect consumers from unfair business practices under Sections 17(e) and 17(f).
He also criticized MultiChoice for allegedly failing to justify its price hike when invited for a regulatory engagement.
Court Rulings and Observations
During the proceedings, Justice James Omotosho struck out an interlocutory injunction previously sought by MultiChoice, ruling that it had been overtaken by events.
The court also granted the FCCPC’s oral application to regularize its counter-affidavit.
Raising a broader question, Justice Omotosho inquired whether the government has the power to impose price controls in a free-market economy to protect consumers.
Responding, Onigbanjo argued, “My Lord, only the President has the authority to set price ceilings, and no such directive has been issued.”
After hearing arguments from both sides, the judge adjourned the matter until May 8, 2025, for a final judgment.
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