Victor EzejaThere are concerns that the recent court ruling against the Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria could have significant implications for pay-TV subscribers and the agency’s authority to regulate pay-TV services in the country.
The Federal High Court sitting in Abuja had on Wednesday, 12 March, issued an order restraining FCCPC from taking any action against MultiChoice Nigeria Limited following its DStv and GOtv packages price hikes recently.
Join our WhatsApp ChannelJustice James Omotosho issued the order after hearing an ex parte motion filed by MultiChoice’s lawyer, Moyosore J. Onibanjo (SAN), against the FCCPC.
Following the announcement of intention to increase some DStv and GOtv packages, starting from 1 March 2025, the FCCPC had summoned Multichoice’s Chief Executive Officer to appear for an investigative hearing on 27 February 2025.
The Commission warned that failure to justify the price adjustment or comply with fair market principles would lead to regulatory sanctions. It raised concerns of potential market dominance abuse and anti-competitive practices within the pay-TV industry.
FCCPC in a letter dated 27 February 2025, ordered the pay-TV company to suspend its planned price increase.
It subsequently took the matter to court to force Multichoice to reverse the price hike.
However, MultiChoice retaliated. It filed an application contesting the FCCPC’s jurisdiction to control rates in Nigeria’s free-market economy where prices of goods and services are not regulated.
READ ALSO: FCCPC Orders MultiChoice To Maintain Current Prices Pending Investigation
The company said its subscription rates in Nigeria are the lowest among all the countries where it operates. It stated that the cost of the Premium package in Nigeria is equivalent to $29.81, while the same package costs $85.11 in Kenya.
Multichoice’s lawyer maintained that the company has the legal right to operate its business, including adjusting its prices when necessary.
It argued that the FCCPC Act and other enabling laws do not grant the Commission the authority to regulate prices or require businesses to seek approval before adjusting the cost of their services.
It therefore sought an order of interim injunction restraining the FCCPC, its agents, servants, or privies from sanctioning MultiChoice in any manner in relation to its price increase pending the hearing and determination of the case.
After hearing the ex-parte application, Justice Omotosho ordered the FCCPC to refrain from imposing any sanctions or taking “any administrative steps” against the pay-TV firm pending further legal proceedings.
The judge fixed 27 March for accelerated hearing of the case.
While the controversy lingers, there are concerns that the outcome of the court case might have some implications
Regulatory Oversight
There are concerns that if the ruling finally favours Multichoice, it could limit the FCCPC’s authority to regulate pay-TV services, and could also reduce its oversight of the industry. This might result in fewer protections for consumers against unfair practices, such as arbitrary price increases, poor service quality, or lack of transparency in billing.
Market Competition
The ruling, according to analysts, could impact competition within the pay-TV market. If the FCCPC is restricted in its ability to enforce competition laws, larger pay-TV providers might engage in anti-competitive practices, such as monopolistic behaviour or predatory pricing, which could stifle innovation and limit choices for consumers.
Consumer Rights
Pay-TV subscribers might find it more challenging to seek redress for grievances if the FCCPC’s powers are curtailed. By its creation, the commission plays a crucial role in addressing consumer complaints and ensuring that service providers adhere to fair practices. A weakened FCCPC could leave consumers with fewer avenues for resolving disputes.
Service Quality and Pricing
Without robust regulatory oversight, pay-TV providers might have more leeway to increase prices or reduce service quality. Subscribers could face higher costs for services without corresponding improvements in quality or content offerings.
Legal Precedent
The ruling could set a legal precedent that affects other sectors regulated by the FCCPC. If the court’s decision reduces the commission’s authority, it could have far-reaching consequences for consumer protection across various industries in Nigeria.
Industry Standards
The FCCPC often works to establish and enforce industry standards that benefit consumers. A ruling against the commission could lead to a relaxation of these standards, potentially resulting in lower-quality services and fewer safeguards for subscribers.
Reactions To FCCPC’s actions
Mixed reactions have trailed the action of the Federal Competition and Consumer Protection Commission. While some lamented that if the court rules in favour of the pay-TV company, it might lead to a possible rip-off on subscribers, other accused the FCCPC and the government as a whole, of failing to address the general rise in cost of living in the country caused by soaring inflation as a result of high fuel prices and exchange rate, among other factors.
They argued that businesses that are increasing the prices of their services, such as Multichoice has done, were simply responding to the condition of things in the business environment and adjusting to cope with the cost of operations.
“Electricity bills are climbing, but power supply remains unstable. Why is MultiChoice the government’s top concern when the entire system is failing Nigerians? Let’s focus on fixing what truly matters,” an X user, Femi Chels, stated.
“FCCPC didn’t charge telecom, they didn’t look into minimum wage and correlate with cost of living? Many things left unattended to. The country is in chaos already and they shouldn’t point to Multichoice. Landlords, school, foods, and many things,” another X user, @Adeoluseyi01 wrote.
“Today, even people with stable jobs are struggling to pay rent. The real issue isn’t MultiChoice, it’s that our money has lost value. If the economy was stable, a 15% price increase wouldn’t even be a problem,”
“Let’s be honest, there are way bigger problems than DSTV subscription fees. Some people can’t even afford food, yet we’re making noise about cable TV?,” @skillzxtimi stated.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
