MultiChoice faces Nigeria charges over another DSTV price hike

Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has filed charges against MultiChoice Nigeria Limited and its Chief Executive Officer, John Ugbe, over the company’s decision to implement a price increase for its DStv and GOtv services despite a regulatory directive to suspend it.

The legal action, instituted at the Federal High Court in Lagos, accuses MultiChoice of defying an official order, obstructing an ongoing regulatory investigation, and violating the Federal Competition and Consumer Protection Act (FCCPA) 2018. The case marks an escalation in the regulatory tussle between the pay-TV giant and the Nigerian government.

On February 27, the FCCPC directed MultiChoice to halt its planned subscription price increase until the conclusion of an inquiry into its justification. However, the company proceeded with the price adjustment on March 1, prompting the Commission to take legal action.

According to court filings, MultiChoice is charged with three counts of regulatory violations, including willfully obstructing the FCCPC’s inquiry by ignoring its directive (Section 33(4)), impeding an ongoing investigation (Section 110), and attempting to mislead the Commission by implementing the hike without regulatory clearance (Section 159(2), punishable under Section 159(4)(a) and (b)).

The FCCPC argues that MultiChoice’s conduct represents a blatant disregard for regulatory oversight and an attempt to undermine consumer protection laws. The Commission emphasized that such actions set a dangerous precedent in Nigeria’s business environment, where dominant market players could arbitrarily alter prices without due oversight.

By increasing prices ahead of its scheduled investigative hearing on March 6, MultiChoice is accused of acting in bad faith and deliberately circumventing regulatory processes. The FCCPC is now considering additional enforcement measures, including sanctions, financial penalties, and potential regulatory interventions to ensure compliance.

Second hike in a year

The company had earlier attributed its pricing adjustments to inflationary pressures and foreign exchange fluctuations, citing a need to sustain its operations amid economic challenges. However, the FCCPC maintains that a thorough review is necessary to determine whether the price hike was justified or amounted to exploitative business practices.

MultiChoice, which has a dominant position in Nigeria’s pay-TV sector, has faced scrutiny over previous price increases. In 2024, the company’s active subscriber base declined by 9% across Africa, with a 13% drop in key markets like Nigeria, Angola, Kenya, and Zambia, partly due to affordability concerns.

In the latest round of hike, the company is increasing subscription prices by at least 20%, marking the second price hike in a year. Some of the prices are as follows:

DStv Premium: ₦45,000 (from ₦37,000)
DStv Compact Plus: ₦35,000 (from ₦30,000)
DStv Compact: ₦19,000 (from ₦15,700)