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 defiance of regulatory directives concerning subscription price adjustments. This action stems from MultiChoice’s implementation of price increases for its DStv and GOtv services on March 1, 2025, despite the FCCPC’s explicit instruction on February 27, 2025, to suspend the planned hike pending the outcome of an investigation into the price adjustments. The FCCPC views this action as a blatant disregard for regulatory oversight and an attempt to undermine the Commission’s authority.
The charges filed against MultiChoice and its CEO at the Federal High Court in Lagos encompass three specific counts under the Federal Competition and Consumer Protection Act (FCCPA) 2018. The first count alleges willful obstruction of the Commission’s inquiry by implementing the price increase contrary to the directive issued. The second count accuses MultiChoice of impeding the ongoing investigation by ignoring instructions to suspend the price hike. The third count alleges an attempt to mislead the Commission by proceeding with the price adjustments without objection. These charges highlight the gravity of MultiChoice’s alleged actions and the FCCPC’s commitment to upholding consumer rights and fair competition in the Nigerian market.
The FCCPC’s statement underscores MultiChoice’s alleged deliberate disregard for regulatory processes. The Commission argues that by implementing the price increase before appearing at the investigative hearing scheduled for March 6, 2025, MultiChoice not only flouted regulatory directives but also established a pattern of conduct that undermines consumer rights and fair competition. This alleged disregard for due process reinforces the FCCPC’s concerns about MultiChoice’s commitment to regulatory compliance and its potential impact on Nigerian consumers.
Beyond the legal action, the FCCPC is considering further enforcement measures to ensure compliance and accountability. These measures could include sanctions and regulatory interventions designed to deter future violations and protect consumers from unfair pricing practices. The Commission’s proactive stance demonstrates its commitment to effectively regulating the market and safeguarding consumer interests in the face of alleged corporate non-compliance.
Prior to the price increase, MultiChoice had notified its customers about the impending price adjustments, citing the rising costs of delivering premium content as the justification. The company’s notice, titled “Price Adjustments for DStv and GOtv Packages,” explained that the adjustments were necessary to enable them to continue offering world-class homegrown and international content delivered through the best technology. This justification, however, did not exempt them from the regulatory oversight of the FCCPC, which required them to suspend the implementation pending the outcome of its investigation.
While some packages like Compact Plus and Premium remained unchanged at N30,000 and N44,500 respectively, other packages, including the DStv Compact package, were affected by the price increase. The FCCPC’s intervention seeks to assess the justification for these increases and determine whether they are in line with fair market practices and consumer protection principles. The Commission’s actions highlight the importance of regulatory oversight in protecting consumers from potentially exploitative pricing practices and ensuring a level playing field in the market.
