In a significant development, the Federal High Court has struck out a lawsuit filed by MultiChoice Nigeria Limited, the parent company of DStv and GOtv, which sought to prevent the Federal Competition and Consumer Protection Commission (FCCPC) from investigating its recent price hikes. This decision marks a crucial win for consumer rights in Nigeria, as it paves the way for the FCCPC to probe the rationale behind the company’s frequent price increases.
The controversy began in February when MultiChoice defied the FCCPC’s invitation to discuss its pricing strategy and instead raised subscription rates for its DStv and GOtv services, just eight months after a similar increase. The company then took the matter to the Abuja Federal High Court, seeking to restrain the FCCPC from investigating its pricing decisions. However, Justice James Omotosho ruled that MultiChoice’s suit was duplicative and improper, given that a similar matter was already being heard in another court.
The FCCPC has welcomed the court’s decision, with Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, describing it as an affirmation of the rule of law and a significant step towards preventing companies from using procedural tactics to obstruct regulatory oversight. In a statement, Bello emphasized that the ruling sends a clear message that regulatory agencies will not be hindered by procedural roadblocks when exercising their lawful mandate to ensure fairness, transparency, and accountability in the marketplace.
Bello also reassured Nigerian consumers that the Commission is committed to investigating and addressing exploitative pricing and other anti-consumer practices, in line with the provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018. This commitment is a significant assurance to consumers who have been affected by MultiChoice’s frequent price hikes, and it underscores the FCCPC’s determination to protect consumer rights and promote fair competition in Nigeria’s marketplace.
The outcome of this case is a testament to the FCCPC’s efforts to ensure that companies operate within the bounds of the law and prioritize consumer welfare. As the Commission continues to investigate MultiChoice’s pricing practices, consumers can expect a more transparent and accountable marketplace, where their rights are protected and their interests are prioritized.
