The Federal High Court in Abuja has made a significant ruling in the case between MultiChoice Nigeria and the Federal Competition and Consumer Protection Commission (FCCPC) regarding a recent subscription price hike. The court dismissed MultiChoice’s lawsuit, stating that it was an abuse of court process as similar proceedings were already in progress elsewhere.
Justice James Omotosho highlighted that while the FCCPC has investigative powers under its establishing Act, it does not have the authority to fix or suspend prices without a specific delegation from the President through a gazetted instrument. As no such delegation was presented to the court, the FCCPC’s actions were deemed to be beyond its jurisdiction.
The ruling emphasized Nigeria’s free market system, where service providers like MultiChoice have the right to set their prices, and consumers have the freedom to accept or reject them. Justice Omotosho also pointed out that the FCCPC’s actions, including directing MultiChoice to suspend its price increase, violated the company’s right to a fair hearing and appeared to be selectively targeted.
The judge dismissed the FCCPC’s argument that MultiChoice held a dominant market position, calling it untenable. He cautioned against regulatory bodies attempting to fix prices, as this could deter investors and have negative implications for the economy.
Despite the FCCPC directing MultiChoice to maintain its existing pricing structure during an investigation into the proposed hike, MultiChoice went ahead with the price increase on March 1, 2025, citing inflation and operational cost pressures. In response, the FCCPC filed a lawsuit challenging the hike and threatening to sanction the company, leading MultiChoice to file its own suit to prevent FCCPC from taking action against it.
This ruling serves as a reminder of the challenges of consumer protection in Nigeria’s free market economy, where regulatory bodies must strike a balance between oversight and respecting corporate autonomy. It underscores the importance of following legal procedures and upholding the principles of a fair and competitive market environment.
