Court Dismisses MultiChoice Suit against FCCPC, Says Agency Can’t Fix Prices in Free Market Economy

Alex Enumah  and James Emejo in Abuja

A Federal High Court in Abuja has dismissed the suit by MultiChoice challenging the Federal Competition and Consumer Protection Commission’s (FCCPC) intervention in the recent increase in the subscription prices of DStv and GOtv.

Justice James Omotosho dismissed the suit for been an abuse of court process while delivering ruling in the preliminary objection against the suit by the FCCPC.

MultiChoice Nigeria, the parent company of DStv and GOtv, had dragged the FCCPC to court for intervening in its recent subscription price hike.

MultiChoice had in late February announced an increase in subscription rates of DStv and GOtv by up to 25 per cent effective from March 1, 2025.

The organisation stated that the increment was occasioned by rising inflation and operational cost.

Responding, the FCCPC opposed the move, and call for regulatory review, while threatening sanctions of MultiChoice fails to shelve the planned price increase.

Miffed by this intervention, the firm approached the Federal High Court to challenge the powers of the agency to prevent it from increasing the prices of its goods and services.

But, the  court, presided over by Justice James Omotosho, yesterday  ruled that MultiChoice’s suit was duplicative and improper, given the existence of a similar matter involving the same parties pending before another court.

Consequently, the court struck out the application in its entirety.

 The judge stressed that the plaintiff should have pursued its arguments in that court, rendering the current filing procedurally inappropriate.

However, having dismissed the suit on grounds of been an abuse of court processes, the judge looked at the merit and noted that the Federal Competition and Consumer Protection Commission’s (FCCPC) did not have the necessary powers to intervene in the recent increase in subscription prices of DStv and GOtv.

According to the judge, the federal agency cannot impose price control of goods and services without the approval of the president.

He observed that although the FCCPC has investigative powers under its establishing Act, it the agency lacked the authority to fix or suspend prices unless specifically delegated by the President through a gazetted instrument.

He observed that in the instant case no evidence of such delegation was presented to the court.

“The power to fix prices is exclusively that of the President. Any decision taken without such delegation is a nullity,” he stated.

Besides, the judge stated that Nigeria operates a free market system, and as such service providers like MultiChoice retains 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.

He warned that attempts to fix prices by regulatory bodies could scare off investors and harm the economy.

The court held that while the FCCPC may investigate market practices, it cannot impose price controls without proper legal backing.

However, reacting to the judgment, Executive Vice Chairman/

Chief Executive, FCCPC, Mr. Tunji Bello, described the ruling as an affirmation of the rule of law and a significant step towards curbing procedural tactics aimed at obstructing lawful regulatory oversight.

In a statement issued by Director,Corporate Affairs, FCCPC, Ondaje Ijagwu, Bello said: “It sends a clear message that regulatory agencieswill not be hindered by procedural roadblocks when exercising their lawful mandate to ensure fairness, transparency, and accountability in the marketplace.”

“Nigerian consumers can be assured that the commission is fully committed to investigating and addressing exploitative pricing and other anti-consumer practices, in line with the provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018.”