Breaking: Court dismisses Multichoice’s suit against FCCPC

The Federal High Court in Abuja has thrown out a lawsuit filed by MultiChoice Nigeria, the operators of DStv and GOtv, challenging the intervention of the Federal Competition and Consumer Protection Commission (FCCPC) in its recent subscription price hike.

Delivering judgment, Justice James Omotosho ruled that the suit amounted to an abuse of court process, pointing out that similar litigation on the same subject matter is already pending before a Lagos court. The judge said MultiChoice should have pursued its claims through the existing case rather than filing a fresh one.

While affirming FCCPC’s authority to investigate anti-competitive behavior and protect consumers, the court clarified that the commission lacks legal powers to unilaterally impose price controls unless formally empowered by the President through a gazetted directive.

“No such delegation exists in this matter,” Justice Omotosho stated.

He emphasized that Nigeria operates a free-market economy, meaning private businesses like MultiChoice are allowed to determine their pricing. “Consumers have the discretion to accept or reject such services,” he added.

The court faulted the FCCPC’s directive ordering MultiChoice to halt its planned price hike, describing the move as a violation of the company’s right to fair hearing. Justice Omotosho also dismissed the FCCPC’s claim that MultiChoice holds a dominant position in the pay-TV market, arguing there was no credible evidence to support that assertion.

He further noted that pay-TV services are not essential and that Nigerians are not compelled to subscribe. According to him, any form of government-enforced price regulation must apply to an entire industry and not just a single operator.

The court also referenced a 2022 decision by the Competition and Consumer Protection Tribunal, which ruled in favor of MultiChoice, affirming its right to determine prices, as consumers could choose between different entertainment platforms, including online streaming services like YouTube.

Justice Omotosho warned against regulatory overreach, saying unauthorized interference in pricing could scare off investors and hurt Nigeria’s economy.

“FCCPC must operate within the confines of the law,” he said, adding that the commission’s powers in price control matters are purely advisory unless explicitly assigned by a presidential order.

He concluded that the commission appeared to be unfairly singling out MultiChoice, noting that other operators in the industry had not faced similar scrutiny.

With this ruling, the court has reaffirmed that price control in Nigeria remains a presidential prerogative, and not one to be enforced by regulatory agencies without due process.