By Lizzy Chirkpi
In a significant legal blow to MultiChoice Nigeria Limited, the Federal High Court in Abuja today dismissed the pay-TV giant’s lawsuit seeking to prevent regulatory oversight of its DStv and GOtv price increases. Justice James Omotosho delivered the ruling, labeling MultiChoice’s suit an “abuse of court process.”
The judgment effectively lifts a previous interim order issued by the same court, which had temporarily restrained the Federal Competition and Consumer Protection Commission (FCCPC) from taking any administrative action against MultiChoice following its announcement of price hikes for its DStv and GOtv services.
MultiChoice had approached the court, with its lawyer Moyosore J. Onigbanjo (SAN) arguing that the FCCPC was continuing to issue cease and desist letters and threatening further sanctions despite ongoing litigation (Case No. FHC/ABJ/CS/379/2025). This legal action followed the FCCPC’s directive for MultiChoice’s Chief Executive Officer to appear at an investigative hearing on February 27, 2025.
The FCCPC had expressed serious concerns regarding the frequency of MultiChoice’s price adjustments, potential abuse of its dominant market position, and alleged anti-competitive practices within the Nigerian pay-TV sector. The commission had also cautioned that failure to adequately justify the price increases or adhere to fair market principles could lead to regulatory sanctions.
In its suit, MultiChoice, through its legal team led by Onigbanjo, sought an injunction to prevent the FCCPC and its agents from prosecuting the company based on a letter dated March 3, 2025, citing a lack of fair hearing. The company also requested a court order to restrain the FCCPC from sanctioning MultiChoice over its price increases.
Furthermore, Onigbanjo had urged the court to declare that the FCCPC lacks the statutory authority to prevent MultiChoice from setting its own prices, arguing that Nigeria operates under a free-market economy where the prices of goods and services are not subject to regulation. He contended that the FCCPC Act and other relevant laws do not empower the commission to regulate prices or require businesses to seek approval before adjusting their service costs.
However, at the court session on March 27, 2025, the FCCPC’s counsel, Prof. Joe Agbugu (SAN), countered that the commission’s actions at the time MultiChoice initiated the legal action did not involve price regulation or fixing. He firmly asserted that the FCCPC is legally mandated to regulate alleged abuses of dominant market positions, particularly when such abuses negatively impact Nigerian consumers.
Justice Omotosho’s dismissal of MultiChoice’s suit signals a potential strengthening of the FCCPC’s regulatory oversight in the pay-TV industry and could pave the way for further scrutiny of MultiChoice’s pricing strategies. The judgment will likely be welcomed by Nigerian consumers who have frequently voiced concerns over increasing subscription costs.