The Federal High Court in Abuja has ruled in favour of MultiChoice Nigeria, validating its right to increase DStv and GOtv prices.
FCCPC Lacked Legal Power to Halt Price Hike
Justice James Omotoso ruled that the Federal Competition and Consumer Protection Commission (FCCPC) acted beyond its authority by attempting to suspend the price hike. He explained that only the President, through a gazetted order, can authorize price regulation — no such order was presented.
Price Increase Sparks Legal Battle
MultiChoice had announced new subscription rates on February 24, which took effect on March 1. The FCCPC responded by summoning MultiChoice’s CEO and ordering a halt to the hike. However, the company refused and sued the commission on March 3.
Justice Omotoso later issued a restraining order against FCCPC on March 12, preventing further administrative actions during the suit.
Court Affirms Free Market Economy
In his judgment, the judge emphasized that Nigeria runs a free-market economy. He declared that service providers like MultiChoice can set prices without prior approval. He also dismissed FCCPC’s dominance claims and stressed that pay-TV services are non-essential and optional.
Regulatory Overreach Could Harm Investments
Justice Omotoso warned that regulatory attempts to control prices without legal authority could discourage investment and damage economic stability. He added that the FCCPC’s actions violated MultiChoice’s right to a fair hearing.
He further stated that overstepping regulatory boundaries sends a negative signal to foreign investors and undermines the nation’s business climate.
Court Flags Pending Case but Upholds MultiChoice’s Position
Although the judge noted that a related case was pending in another court, he upheld MultiChoice’s claims, marking a major legal win for the pay-TV provider. The ruling also outlines the limits of FCCPC’s power in regulating pricing.
Legal analysts say this judgment could set a precedent for future disputes between regulators and private companies in Nigeria’s media and telecommunications sectors.
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