Court Rules on GOtv, DStv Subscription Price Increase Suit Against FCCPC

• A Federal High Court has dismissed MultiChoice Nigeria’s suit challenging the FCCPC’s intervention in its recent price hike
• Justice Omotoso described the suit brought by Multichoice against FCCPC as an abuse of the court process
• The court found that the FCCPC’s order to suspend the price increase violated MultiChoice’s right to a fair hearing

Dave Ibemere, a journalist at Legit.ng, has been reporting on business for over ten years. He has deep knowledge of the Nigerian economy, stock market, and general market trends.

The Federal High Court in Abuja has ruled on the legal battle between MultiChoice Nigeria, the operator of DStv and GOtv, and the Federal Competition and Consumer Protection Commission (FCCPC) over recent subscription price adjustments.

In a judgment delivered on Thursday, May 8, Justice James Kolawole Omotoso dismissed MultiChoice's lawsuit challenging the FCCPC's regulatory intervention, citing abuse of court process.

The court noted that similar proceedings were already ongoing in another court, advising MultiChoice to address its grievances within existing legal frameworks rather than initiating a separate suit.

Court clarifies Multichoice and FCCPC case

Justice Omotoso clarified that while the FCCPC possesses broad investigative powers under its mandate, including the authority to scrutinise anti-competitive practices and protect consumer interests, it lacks the statutory mandate to fix or suspend prices without explicit presidential delegation.

The court said:

"In this instance, no such delegation from the president was demonstrated to the court," Justice Omotoso stated.

"The power to fix prices remains exclusively vested in the president. Any action taken without such delegation it is deemed void."

The court also spoke on free-market principles, noting that it is the service providers' prerogative to determine their pricing structures, with consumers retaining the freedom to accept or reject these prices, NewsTelegraph reports.

The judgment further criticised the FCCPC's directive to suspend MultiChoice's price adjustment, labelling it an infringement on the company's right to a fair hearing and a form of selective regulatory enforcement.

Justice Omotoso dismissed claims of MultiChoice's dominant market position as unsubstantiated, asserting that the services it provides are discretionary rather than essential.

The judge cautioned:

"The viability of regulatory actions that overreach, particularly unauthorised price controls, could potentially deter investment and undermine economic stability."

While affirming the FCCPC's authority to investigate anti-competitive practices and consumer protection violations, Justice Omotoso emphasised that regulatory actions must strictly adhere to legal provisions and refrain from imposing pricing directives without proper legal authorisation.

FCCPC vs Multichoice

The legal battle arose following MultiChoice's announcement of a subscription rate increase of up to 25% effective March 1, 2025, attributing the adjustment to mounting inflation and escalating operational costs, Leadership reports.

The FCCPC responded by challenging the move, seeking regulatory review and issuing threats of sanctions, prompting MultiChoice to seek judicial redress.

How to avoid new DStv, GOtv subscription prices

Earlier, Legit.ng reported that MultiChoice introduced a new loyalty benefit to help customers avoid the new DStv and GOtv subscription prices.

The new subscription prices, which represent about a 21% increase from the previous rates, will take effect from March 1.

The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice over the new pricing.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng