Multichoice free to raise DSTV prices in Nigeria, Court says

A Federal High Court in Abuja has ruled that the Federal Competition and Consumer Protection Commission (FCCPC) lacks the powers to regulate or suspend price increases by satellite television provider MultiChoice Nigeria.

The court, however, dismissed the suit as an abuse of court process, noting that a similar case involving the same parties was already pending before another judge.

The declaration by Justice James Omotosho on Thursday represents a significant legal victory for MultiChoice in its ongoing dispute over DStv and GOtv subscription tariffs.

The judge held that the FCCPC had overstepped its mandate by attempting to block MultiChoice’s recent price hikes without conducting a prior investigation, as required by law.

“FCCPC is not vested with the power to suspend the price hike of an entity before conducting an investigation,” Justice Omotosho ruled, according to Nairametrics. He further clarified that “prices cannot be regulated in a free market economy,” adding that any attempt to fix prices could “scare investors away.”

He explained that only the president of Nigeria has the constitutional authority to regulate prices or establish a price control board, and even then, it must be through a formal legal process applicable industry-wide—not selectively targeting a single firm like MultiChoice.

MultiChoice approached the court in March to restrain the FCCPC from intervening in its pricing strategy, following a March 3 cease-and-desist letter from the Commission and threats of regulatory sanctions.

The FCCPC had summoned MultiChoice’s CEO and demanded justification for the company’s new prices, accusing it of exploiting its market dominance. The company was warned of penalties under Sections 17 and 155 of the FCCPA if it proceeded with the new rates.

“Selective enforcement”

MultiChoice, represented by the counsel Moyosore Onigbanjo, maintained that the FCCPC lacked the statutory authority to regulate prices, citing Nigeria’s free market principles.

Although Justice Omotosho agreed with that position, he ultimately struck out the suit, citing abuse of court process. He noted that a similar case involving the parties was already pending before another judge of the same court and that MultiChoice should have raised its grievance there instead.

Still, he criticized the FCCPC for what he called selective enforcement, pointing out that the Commission appeared to focus solely on MultiChoice while ignoring other streaming and pay-TV platforms that also adjusted prices.

This ruling echoes a 2022 judgment by the Competition and Consumer Protection Tribunal, which held that MultiChoice had the right to fix its prices and that consumers retained the freedom to choose whether or not to subscribe.

The latest legal dispute began after MultiChoice announced a fresh round of price hikes effective March 1, citing inflation and rising operational costs. The move sparked widespread public criticism and triggered regulatory scrutiny, prompting the company’s legal challenge.

While the court did not grant MultiChoice’s prayers due to procedural issues, the judge’s opinion on the limits of FCCPC’s authority provides legal cover for the company’s pricing decisions moving forward.