The Federal Competition and Consumer Protection Commission (FCCPC) has initiated legal proceedings against MultiChoice Nigeria Limited and its Chief Executive Officer, John Ugbe, for alleged violations of regulatory directives, obstruction of an ongoing inquiry, and breaches of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
The announcement was made by Ondaje Ijagwu, Director of Corporate Affairs at the FCCPC, in a statement posted on the Commission’s official X account.
The legal action follows MultiChoice’s decision to proceed with a price increase across its DStv and GOtv packages on March 1, 2025, despite a directive from the FCCPC to suspend the adjustment pending an investigative hearing.
Planned Price Increases and FCCPC’s Response
MultiChoice had notified its customers of the planned price hikes, which included a 25% increase for the DStv Compact bouquet (from N15,700 to N19,000), a 20% increase for the Compact Plus package (from N25,000 to N30,000), and a 20% rise for the Premium plan (from N37,000 to N44,500). GOtv subscribers were also affected, with the Supa Plus plan increasing from N15,700 to N16,800, among other adjustments.
In response, the FCCPC summoned MultiChoice Nigeria to justify the price review and directed its CEO to appear at an investigative hearing scheduled for February 27, 2025. The Commission raised concerns over frequent price hikes, potential abuse of market dominance, and anti-competitive practices in the pay-TV industry.
The FCCPC warned that failure to provide adequate justification or comply with fair market principles would result in regulatory sanctions. It emphasized that maintaining current pricing was essential to prevent consumer harm during the review period.
MultiChoice’s Alleged Violations
Despite the FCCPC’s directive, MultiChoice implemented the price increase on March 1, 2025, prompting the Commission to file charges against the company and its CEO at the Federal High Court, Lagos Judicial Division. The charges include:
- Obstruction of an Inquiry: MultiChoice allegedly violated Section 33(4) of the FCCPA by proceeding with the price hike despite regulatory orders.
- Impeding an Ongoing Investigation: The company disregarded directives to suspend the price adjustment, contravening Section 110 of the FCCPA.
- Providing Misleading Information: MultiChoice is accused of attempting to mislead the Commission by enforcing the price increase without addressing regulatory concerns, breaching Section 159(2) and punishable under Section 159(4)(a) and (b).
FCCPC’s Stance and Next Steps
The FCCPC views MultiChoice’s actions as a deliberate attempt to undermine regulatory authority, disrupt market fairness, and deny Nigerian consumers the protections afforded by law. By implementing the price hike before the scheduled investigative hearing on March 6, 2025, the company is accused of non-compliance with due regulatory processes and consumer protection laws.
Beyond the legal proceedings, the FCCPC is reviewing additional enforcement measures, including potential sanctions and regulatory interventions, to ensure MultiChoice adheres to consumer protection laws and fair market principles.
The Commission reiterated its commitment to safeguarding Nigerian consumers from exploitative business practices and ensuring that dominant market players operate within the bounds of the law.