The Federal High Court in Abuja has fixed May 8, 2025, for judgment on applications filed by MultiChoice Nigeria Limited and the Federal Competition and Consumer Protection Commission (FCCPC) concerning the former’s DStv and GOtv price increases in Nigeria.
Justice James Omotosho set the judgment date after hearing arguments from the legal teams of both parties.
Nairametrics previously reported that Omotosho had issued an order restraining the FCCPC from taking “any administrative steps” against MultiChoice Nigeria Limited following its announced price increases for DStv and GOtv.
This order was granted in an ex parte motion filed by MultiChoice’s lawyer, Moyosore J. Onibanjo (SAN), against the FCCPC, under case number FHC/ABJ/CS/379/2025.
The FCCPC had earlier summoned MultiChoice Nigeria to explain the rationale behind the price adjustments.
The Commission directed the company’s Chief Executive Officer to attend an investigative hearing on February 27, 2025, expressing concerns over frequent price hikes, potential abuse of market dominance, and anti-competitive practices within the pay-TV industry.
The FCCPC also warned that failure to justify the price increases or adhere to fair market principles could result in regulatory sanctions.
On his part, MultiChoice’s legal team, led by Onibanjo, filed an ex parte motion seeking an interim injunction to prevent the FCCPC and its officers from prosecuting MultiChoice based on the letter dated March 3, 2025, pending the resolution of the interlocutory injunction motion.
They also sought an order restraining the FCCPC, its agents, servants, or representatives from sanctioning or penalizing MultiChoice concerning its price increases until the interlocutory injunction motion is determined.
Onibanjo argued that Nigeria operates a free-market economy where the prices of goods and services are not regulated.
He contended that the FCCPC Act and other relevant laws do not empower the Commission to regulate prices or require businesses to obtain approval before adjusting their service costs.
What transpired in court
- During the resumed hearing, FCCPC’s counsel, Prof. Joe Agbugu SAN, explained that MultiChoice had notified the Commission on February 25 about a contemplated price increase effective from March 1, thereby acknowledging the FCCPC’s supervisory role.
- He stated that the FCCPC invited MultiChoice for further investigation, but the company requested to reschedule the meeting from February 27 to March 6, 2025.
- He said the FCCPC agreed to the new date but instructed MultiChoice to temporarily hold off on implementing the price increase.
- Prof. Agbugu emphasized that there was no issue of price regulation or fixing at the time MultiChoice initiated the legal action.
- He asserted that the FCCPC is authorized by law to regulate abuses of dominant market positions, especially when such abuses affect Nigerian consumers.
- He argued that the FCCPC can set an “authorized price” against a dominant player in line with provisions in the FCCPC Act.
- He urged the court to dismiss MultiChoice’s case.
- In rebuttal, Onibanjo SAN described the FCCPC’s concerns about excessive pricing as an afterthought.
- He pointed out that the FCCPC’s letter focused on price increases, a matter he added the Commission lacked the authority to regulate.
- He reiterated that the power to regulate or fix prices can only be exercised with presidential approval, which the FCCPC would then enforce publicly.
He called on the court to uphold MultiChoice’s position against the FCCPC. After hearing from both parties, Justice Omotosho reserved judgment, with a decision expected on May 8, 2025.
Background
Recall that MultiChoice had informed customers of a planned price increase for its DStv and GOtv packages, scheduled to take effect on March 1, 2025. The proposed adjustments included:
- DSTV Compact: Increase from N15,700 to N19,000 (a 25% rise).
- DStv Compact Plus: Increase from N25,000 to N30,000 (20% hike).
- DStv Premium: Increase from N37,000 to N44,500 (20% increment).
- GOtv Supa Plus: Increase from N15,700 to N16,800, among other adjustments.
These increases came less than a year after a previous hike in May 2024, which the company attributed to inflation and rising operational costs.
The planned increases elicited reactions from Nigerians, who expressed concerns over the lack of viable competition in the pay-TV market.
In response to the proposed increases, the FCCPC summoned MultiChoice Nigeria to explain the rationale behind the price adjustments and later filed a lawsuit against the company at a Lagos High Court, alleging violations of regulatory directives and obstruction of an ongoing inquiry.