Court restrains FCCPC from taking action against MultiChoice over DStv, GOtv price hike

The Federal High Court in Abuja has issued an interim order restraining the Federal Competition and Consumer Protection Commission (FCCPC) from taking any administrative action against MultiChoice Nigeria Limited over its recent price increase for DStv and GOtv subscriptions.

Justice James Omotosho granted the order on Wednesday in response to an ex parte motion filed by MultiChoice’s legal counsel, Moyosore J. Onibanjo (SAN).

The case, marked FHC/ABJ/CS/379/2025, challenges the FCCPC’s directive demanding justification for the price hike and the Commission’s threat of regulatory sanctions against the pay-TV company.

MultiChoice Nigeria, the operator of DStv and GOtv, recently announced a price increase across its subscription packages, effective March 1, 2025. Under the revised pricing structure: The DStv Compact package increased from N15,700 to N19,000 (a 25% rise); The Compact Plus package jumped from N25,000 to N30,000 (a 20% increase).The Premium plan, the highest tier, surged from N37,000 to N44,500 (a 20% increase).

GOtv subscribers also faced hikes, with the Supa Plus plan rising from N15,700 to N16,800, among other adjustments.

The FCCPC responded to the price adjustments by summoning MultiChoice Nigeria’s Chief Executive Officer for an investigative hearing scheduled for February 27, 2025. The Commission expressed concerns over what it described as “frequent price hikes, potential market dominance abuse, and anti-competitive practices” within the pay-TV sector.

READ ALSO: MultiChoice defies FCCPC order, implements subscription price hike

MultiChoice’s legal team, led by Onibanjo, filed an ex parte motion seeking an interim injunction to restrain the FCCPC from enforcing any regulatory actions against the company. The company argued that Nigeria operates a free-market economy, where businesses are not required to seek government approval before adjusting prices for their services.

The legal submission emphasized that the FCCPC Act does not empower the Commission to regulate pricing in the private sector, adding that MultiChoice had duly notified customers of the price changes in a letter dated February 21, 2025.

However, on February 27, 2025, the FCCPC issued a directive ordering MultiChoice to suspend the price hike.

In response, MultiChoice filed a lawsuit on March 3, 2025, challenging the Commission’s authority over pricing matters.

Onibanjo stated that despite the ongoing legal proceedings, the FCCPC issued another letter on March 3, 2025, threatening to prosecute MultiChoice if it failed to justify the price increment.

Advertisement

The senior lawyer further told the court that the FCCPC released a public statement on March 5, 2025, reinforcing its stance, prompting MultiChoice to seek an urgent restraining order.

At Wednesday’s hearing, Justice Omotosho, after reviewing the ex parte motion, ruled in favor of MultiChoice.

The judge ordered that the FCCPC must refrain from taking any administrative steps or imposing penalties against MultiChoice pending the determination of the lawsuit.

READ ALSO: Multichoice Nigeria loses 243,000 subscribers amid rising inflation, regulatory battles

Additionally, the court granted an accelerated hearing of the case, setting March 27, 2025, as the date for further proceedings.

The FCCPC has maintained that its regulatory oversight extends to ensuring fair market practices and protecting consumer rights. The Commission has previously warned that failure to provide a satisfactory justification for the price hike could lead to sanctions against MultiChoice.

In a separate move, the FCCPC also filed a suit against MultiChoice at the Lagos High Court, alleging violations of regulatory directives and obstruction of an ongoing inquiry into the company’s pricing practices.

The legal battle between MultiChoice and the FCCPC underscores broader concerns about price regulation in Nigeria’s pay-TV industry. While the government seeks to protect consumers from arbitrary price hikes, MultiChoice argues that it must adjust its pricing structure to sustain operations, citing comparative costs in other countries.

A sworn affidavit deposed by Gozie Onumonu, Head of Regulatory Affairs and Government Relations at MultiChoice, stated that Nigeria has the lowest DStv subscription rates compared to other countries where the service operates. For instance, the Premium package in Nigeria costs $29.81, whereas it is $85.11 in Kenya.