Justice James Omotosho of the Federal High Court in Abuja has dismissed a lawsuit filed by MultiChoice Nigeria, the operators of DStv and GOtv.
The suit challenged the Federal Competition and Consumer Protection Commission’s (FCCPC) intervention regarding MultiChoice’s recent increase in subscription prices.
In his judgment, Justice Omotosho stated that the lawsuit was an abuse of court process because similar legal proceedings were already underway in Lagos State. He emphasized that MultiChoice should have presented its arguments in that existing court, making the current filing inappropriate.
However, Justice Omotosho clarified that while the FCCPC possesses investigative powers under its establishing Act, it lacks the authority to fix or suspend prices unless specifically delegated to do so by the President through an official gazette.
The court noted that no such delegation was presented as evidence.
He further stated that Nigeria operates under a free market system, granting service providers like MultiChoice the right to determine their prices, with consumers having the choice to accept or reject them.
The judge also ruled that the FCCPC’s actions, including directing MultiChoice to suspend its price hike, violated the company’s right to a fair hearing and appeared to be unfairly targeting MultiChoice.
Justice Omotosho dismissed the FCCPC’s assertion that MultiChoice held a dominant market position, deeming the argument unsustainable. He reasoned that the services provided by MultiChoice are discretionary rather than essential, as Nigeria could function without them.
He cautioned that attempts by regulatory bodies to fix prices could deter investors and negatively impact the economy. The court concluded that while the FCCPC can investigate market practices, it cannot impose price controls without proper legal authorization.
MultiChoice had increased its subscription rates by up to 25% on March 1, 2025, citing inflation and rising operational costs. The FCCPC opposed this increase, calling for a regulatory review and threatening sanctions, which led to MultiChoice’s legal challenge.
Justice Omotosho further clarified that although the FCCPC is a federal government agency, it must operate within the bounds of its legal powers. He stated that while the FCCPC has the authority to declare market dominance and discriminatory pricing against a company, it must do so after conducting a thorough investigation.
The judge noted that, based on the evidence presented, the FCCPC issued the directive to suspend MultiChoice’s price increase before any investigation had commenced, thus acting beyond its statutory powers.
According to the judge, in Nigeria’s free market economy, only the President has the exclusive authority to regulate prices and establish a price control board for defaulting foreign companies or regulated goods and services. He added that the FCCPC’s role in price fixing is merely advisory.
Justice Omotosho stressed that the President’s power to regulate prices cannot be exercised by any other individual, agency, or body. He reiterated that the FCCPC can only regulate prices if the President delegates such power to the Commission through an official “instrument.”
The court held that MultiChoice, as a private company operating within Nigeria’s free market economy, cannot have its subscription prices arbitrarily restricted, except by a Presidential order in accordance with relevant laws. Justice Omotosho further stated that if the President decides to fix prices, it must apply to an entire industry, not just a single company.
The judge acknowledged the FCCPC’s powers to make rules regarding anti-competition and consumer protection, among other things, but specifically excluded the power to fix prices.
He recalled a 2022 ruling by the Competition and Consumer Protection Tribunal, which affirmed MultiChoice’s right to increase prices while allowing Nigerians the choice to subscribe to other pay-TV platforms.
Finally, Justice Omotosho suggested that the FCCPC appeared to be unfairly targeting MultiChoice’s pricing while overlooking the pricing strategies of other pay-TV and online streaming services in Nigeria, such as YouTube.
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