A Federal High Court in Abuja has dismissed a suit filed by MultiChoice Nigeria, the parent company of DStv and GOtv, challenging the Federal Competition and Consumer Protection Commission (FCCPC) intervention in its recent subscription price hike.
Justice James Omotoso on Thursday ruled that the suit constituted an abuse of court process as similar proceedings were already pending elsewhere.
He stressed that the company should have pursued its arguments in that court, rendering the current filing procedurally inappropriate.
Justice Omotoso 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 under Section 88 of the FCCPA, adding that no 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.
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.
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.
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.
Responding, the Director General of the FCCPC, Tunji Bello welcomed the ruling of the court as it recognised that the president can delegate the agency with the authority to regulate the prices of goods and services and to probe exploitative pricing practices and to submit its findings, data, and recommendations to the president.
(Daily Trust)
