Tariff Hike: Court Dismisses MultiChoice’s Lawsuit, Faults FCCPC’s Conduct

The Federal High Court sitting in Abuja, on Thursday, dismissed a suit that MultiChoice Nigeria Limited filed to challenge the intervention of the Federal Competition and Consumer Protection Commission (FCCPC) in the recent increase in DStv and GOtv subscription fees.

Delivering judgement, Justice James Omotosho held that “The suit constituted an abuse of court process since the same subject matter is pending before another court.”

He emphasized that “the plaintiff ought to have ventilated its grievances against the FCCPC before that court instead of engaging in a multiplicity of actions.”

However, while faulting the FCCPC’s approach, the court also clarified the limits of its powers “Though its Establishing Act conferred it with investigative powers, it lacks the authority to fix or suspend prices unless specifically delegated by the President through a gazetted instrument.”

Justice Omotosho stressed that “The power to fix prices is exclusively that of the president. Any decision taken without such delegation is a nullity.”

He further emphasized that in Nigeria’s free market system, companies like MultiChoice “retain the right to set their prices, with consumers free to accept or reject them”.

The court ruled that the FCCPC’s directive to halt MultiChoice’s price increase “breached the company’s right to a fair hearing, as it appeared to have been selectively targeted”.

On the Commission’s claim that MultiChoice holds a dominant market position, the court ruled, “The use of services like those provided by the plaintiff is discretionary and not essential. Nigeria can do without it.”

The judge warned that “Attempts to fix prices by regulatory bodies could scare off investors and harm the nation’s economy.”

According to the court, “While the FCCPC may investigate market practices, it cannot impose price controls without proper legal backing.”

The background stems from FCCPC’s February 27 directive ordering MultiChoice to maintain its old pricing structure pending an investigation. Despite this, MultiChoice implemented new prices on March 1 and filed suit seeking judicial protection.

On March 12, the court had temporarily restrained FCCPC from taking action against MultiChoice pending a full hearing.

MultiChoice, represented by Moyosore Onigbanjo, SAN, urged the court to affirm its pricing autonomy, while the FCCPC, through J.E.O. Abugu, SAN, argued that the necessary regulatory steps for a price hike were not followed.

In its defence, FCCPC alleged, “MultiChoice has not only flouted regulatory processes but also demonstrated a pattern of conduct that undermines consumer rights and fair competition.”

It warned of further enforcement, including “sanctions, penalties, and regulatory interventions to ensure compliance and accountability”.

The commission has since filed a three-count charge against MultiChoice and CEO John Ugbe before the Federal High Court in Lagos, citing offenses under sections 33(3), 110, and 159 of the FCCPC Act 2018.

MultiChoice’s original prayer included “an order of interim injunction restraining the FCCPC, its agents, servants, or privies from sanctioning or penalizing MultiChoice (the applicant) in any manner whatsoever in relation to its price increase pending the hearing and determination of the motion for an interlocutory injunction.”