…But Affirms PayTV Firm’s Right To Set Prices
A Federal High Court in Abuja has dismissed a lawsuit filed by MultiChoice Nigeria, operators of DStv and GOtv, challenging the Federal Competition and Consumer Protection Commission’s (FCCPC’s) intervention in its recent subscription price hike but validated the firm’s right to fix prices on its pay TV services in the country.
Delivering the court’s judgment on the suit, Justice James Omotosho described the suit as an abuse of court process since similar proceedings were already pending in a Lagos High Court.
The judge ruled that MultiChoice should have pursued its arguments in the Lagos court, rendering the Abuja filing inappropriate.
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While recognising the FCCPC’s investigative powers based on the provisions of its enabling Act, Justice Omotosho clarified that the commission lacked legal authority to fix or suspend prices without specific presidential delegation through a gazetted instrument, which it did not provide to justify its cause why MultiChoice should be debarred from fixing prices of its pay TV services.
The judge further emphasized Nigeria’s free market system, maintaining that service providers like MultiChoice have the right to set prices, which consumers are free to accept or reject.
He flawed the FCCPC’s directive to the pay TV company to suspend its price increase, describing it as a breach of the company’s right to a fair hearing and suggested that the commission’s actions appeared to be selective in its implementation.
Dismissing the FCCPC’s claim that MultiChoice holds a dominant market position, the Justice Omotosho described the argument untenable, noting that subscription services are discretionary and not essential to Nigeria’s economy.
He cautioned that regulatory attempts to impose price controls without legal backing could cause investors to shun the country in their investment plans and harm the economy.
It would be recalled MultiChoice had raised its Pay TV subscription rates for GOtv and DStv services by up to 25% on March 1, 2025, citing inflation and rising operational costs.
In its reaction to the price hike, the FCCPC opposed the jack up and demanded a regulatory review, with a threat to sanction the company.
This prompted MultiChoice’s to explore legal option in the commission’s move to bar it from upward adjustment of the prices of its services
