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Court halts FCCPC actions against MultiChoice amid price increase

POSTED ON March 13, 2025 •   LOCAL NEWS      BY Abiodun Saheed Omodara
Cable TV

ABUJA, Nigeria- The Federal High Court in Abuja has issued an order on Wednesday preventing the Federal Competition and Consumer Protection Commission (FCCPC) from initiating any administrative actions against MultiChoice Nigeria Limited concerning its recent price hikes for DStv and GOtv.

Justice James Omotosho granted the request in an ex parte motion submitted by MultiChoice’s attorney, Moyosore Onibanjo (SAN), in a case numbered FHC/ABJ/CS/379/2025.

The FCCPC had called on MultiChoice Nigeria to give an account of its price review process. 

The Commission instructed the company’s CEO to attend an investigative hearing on February 27, 2025, expressing concerns about repeated price increases, possible market dominance abuse, and anti-competitive behaviors within the pay-TV sector.

The FCCPC warned that failing to justify the price hike or adhere to fair market practices could lead to regulatory penalties.

MultiChoice’s Arguments in Court “In the ex parte motion filed by MultiChoice's legal representatives, led by Onibanjo, the company requested an interim injunction to prevent the FCCPC and its officials from proceeding with the intended prosecution of MultiChoice, as indicated in a letter dated March 3, 2025, until the motion for an interlocutory injunction was resolved.

MultiChoice sought “an order restraining the FCCPC and its officers from issuing any further directives or taking any actions that could disrupt MultiChoice's business activities until the hearing and resolution of the motion for an interlocutory injunction” and “an order of interim injunction preventing the FCCPC, its agents, servants, or affiliates from sanctioning or penalizing MultiChoice regarding its price increase until the eventual determination of the motion for an interlocutory injunction.”

Onibanjo argued that Nigeria has a free-market economy that does not regulate the pricing of goods and services.

He contended that the FCCPC Act and other relevant laws do not empower the Commission to control prices or require companies to seek approval prior to changing service costs.

He mentioned that MultiChoice had notified about its planned price rise through a letter dated February 21, 2025, but the FCCPC instructed the company to halt this increase via a letter dated February 27, 2025. Following this, he noted that MultiChoice initiated a legal challenge on March 3, 2025, contesting the FCCPC’s authority to regulate prices or stop its price increase.

Despite the pending legal case, Onibanjo informed the court that the FCCPC threatened to take action against MultiChoice, as communicated in a letter dated March 3, 2025, should the company fail to provide a satisfactory explanation for not adhering to the order to halt the price hike.

In an affidavit from Gozie Onumonu, Head of Regulatory Affairs and Government Relations at MultiChoice, it was asserted that the company's subscription charges in Nigeria are the lowest compared to other countries where it operates.

During Wednesday's hearing, Onibanjo referenced his ex parte motion and requested the court to acknowledge a supplementary affidavit showing that the FCCPC had already begun actions despite the ongoing legal proceedings.

After considering the lawyer’s oral request, Justice Omotosho prohibited the FCCPC from undertaking any “administrative steps” against MultiChoice until the case is resolved and scheduled a fast-tracked hearing for March 27, 2025.

MultiChoice had previously informed its customers about a forthcoming price increase for its DStv and GOtv packages, which was set to take effect on March 1, 2025. Under the proposed changes, the DStv Compact bouquet would increase from ₦15,700 to ₦19,000 (a 25% rise), the Compact Plus package would go from ₦25,000 to ₦30,000 (a 20% increase), and the DStv Premium plan, the top-tier package, would rise from ₦37,000 to ₦44,500 (a 20% increment).

GOtv subscribers would also see changes, with the Supa Plus plan increasing from ₦15,700 to ₦16,800, among other modifications.

In reaction to these intended price hikes, the FCCPC summoned MultiChoice Nigeria to explain the price review and subsequently initiated a lawsuit against the pay-TV provider at a Lagos High Court over claims of breaching regulatory directives and hindering an ongoing inquiry.

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