Court Dismisses MultiChoice’s Suit Against FCCPC, Affirms Company’s Right To Set Prices
Justice James Omotosho of the Federal High Court Abuja has dismissed a suit filed by MultiChoice Nigeria, owners of DStv and GOtv, challenging the Federal Competition and Consumer Protection Commission’s (FCCPC) intervention in its recent subscription price hike. Delivering judgment, Justice Omotoso ruled that the suit constituted an abuse of court process as similar proceedings were already pending in Lagos State. He stressed that the plaintiff should have pursued its arguments in that court, rendering the current filing inappropriate. Justice Omotoso, however, noted that while the FCCPC has investigative powers under its establishing Act, it lacks the authority to fix or suspend prices unless specifically delegated by the President through a gazetted instrument. No such delegation was presented to the court. He added that Nigeria operates a free market system, and service providers like MultiChoice retain 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. Justice Omotosho further dismissed the FCCPC’s claim that MultiChoice held a dominant market position, calling the argument untenable. He added that the use of services like those provided by the plaintiff is discretionary and not essential, as Nigeria can do without it. 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 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. MultiChoice had increased subscription rates by up to 25% on March 1, 2025, citing inflation and operational cost pressures. The FCCPC opposed the move, calling for regulatory review and threatening sanctions, prompting the legal challenge. Justice Omotosho further added that while FCCPC is an agency of the federal government of Nigeria, it must act within its powers in line with relevant laws. He said that even though FCCPC has power to declare market dominance and discriminatory prices against an entity, it must make pronouncement after carrying out investigation against such company. The judge held that from the fact before the court, investigation had yet to begin before the FCCPC issued the suspension directive to the MultiChoice. He said the FCCPC acted beyond its power by the directive it issued against MultiChoice price increase. According to the judge, Nigeria operates a free market economy, where only the president of Nigeria has the exclusive powers to regulate prices and to set up a price control board against any defaulting foreign companies or regulated goods and services. Justice Omotosho added that the FCCPC only has an advisory role on the issue of price fixing. The judge said the powers of the president to regulate prices cannot be exercised by any other person or agency or body. He stressed that the FCCPC can only regulate prices if the president delegates such powers to the Commission via an “instrument”. Justice Omotosho held that MultiChoice, being a private company and due to the free market economy of Nigeria, its subscription prices cannot be restrained arbitrarily except only by an order of the President in line with relevant laws. Omotosho further held that in line with relevant laws, if the president decides to fix prices , it must cover an entire industry and not just a single player. The judge said while FCCPC has powers to make rules in respect of anti-competition, anti-consumer protection, among others, except the issue of fixing prices. He recalled that in 2022, the Competition and Consumer Protection Tribunal, had ruled that MultiChoice had the right to increase its price while Nigerians had a choice to opt for other pay TV platforms. Justice Omotosho said FCCPC appears to be targeting MultiChoice unfairly while ignoring the pricing of other pay TVs and online TVs like YouTube in Nigeria.
Admin | 2025-05-08 15:45:33