In a significant ruling on Thursday, the Federal High Court in Abuja dismissed the lawsuit filed by MultiChoice Nigeria Limited, the operator of DStv and GOtv, seeking to uphold its recent price increases. Justice James Omotosho ruled that the suit was an “abuse of court process” because of an existing related case and emphasized the limits of regulatory power in Nigeria’s free-market economy.
According to a 9am News report, MultiChoice had approached the court to restrain the Federal Competition and Consumer Protection Commission (FCCPC) from halting its price adjustments. The pay-TV giant argued that the FCCPC lacked the statutory authority to regulate or suspend prices in Nigeria, which operates under a free-market system.
Legal Background and Court Decision
The FCCPC had earlier summoned MultiChoice over its decision to increase prices, raising concerns about potential abuse of market dominance, anti-competitive behavior, and consumer exploitation. MultiChoice’s legal team, led by Moyosore Onigbanjo (SAN), contended that only the Nigerian president holds the constitutional power to regulate prices, and that the FCCPC’s actions were overreaching.
In his judgment, Justice Omotosho affirmed that while the FCCPC has the power to investigate market dominance and anti-competitive practices, it cannot unilaterally suspend or regulate prices without completing a proper investigation. The court stressed that price regulation in Nigeria is solely the prerogative of the president and must apply industry-wide, not to a single entity.
Omotosho further pointed out that the FCCPC appeared to be unfairly targeting MultiChoice while ignoring other pay-TV operators and online platforms like YouTube that also adjust pricing.
Despite agreeing with some of MultiChoice’s arguments on the limits of regulatory power, the court ultimately dismissed the company’s suit, citing its similarity to an existing case filed by lawyer Festus Onifade. The judge labeled the MultiChoice suit an “abuse of court process,” adding that the company should have presented its grievances in the earlier pending case.
Details of the Controversial Price Hikes
MultiChoice had announced price increases effective March 1, 2025, including:
- DStv Compact: N15,700 → N19,000 (25% increase)
- DStv Compact Plus: N25,000 → N30,000 (20% increase)
- DStv Premium: N37,000 → N44,500 (20% increase)
- GOtv Supa Plus: N15,700 → N16,800
The company cited inflation and rising operational costs as reasons behind the adjustments. The hikes, coming less than a year after a previous increase in May 2024, sparked public outrage and led to the FCCPC’s intervention.
With the court’s dismissal, MultiChoice can proceed with its price increases, although public backlash and potential regulatory scrutiny may persist. The ruling also clarifies the boundaries between regulatory agencies and the executive branch regarding price control in Nigeria.
As the pay-TV landscape evolves, Nigerian consumers may increasingly seek alternatives, highlighting the urgent need for greater competition in the sector.
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