The Federal High Court sitting in Abuja has thrown out a case filed by MultiChoice Nigeria Limited, challenging regulatory objections to its recent price adjustments for DStv and GOtv services.
According to Naturenex, Justice James Omotosho delivered the ruling on Thursday, describing MultiChoice’s suit as an abuse of court process. The judge pointed out that the pay-TV provider was fully aware of a similar, already pending case instituted by lawyer Festus Onifade, yet chose to file its own action.
The court held that MultiChoice ought to have pursued its concerns through the earlier suit instead of initiating a separate one.
While clarifying the legal framework, Justice Omotosho stated that although the Federal Competition and Consumer Protection Commission (FCCPC) has the mandate to investigate cases of market dominance and anti-competitive practices, it does not possess the authority to suspend or reverse price increases without first completing a lawful investigation.
The judge further explained that the power to regulate or set prices rests solely with the President of Nigeria and, even then, such regulations must apply universally across an entire sector — not target a single company like MultiChoice.
The court noted that the FCCPC had acted beyond its jurisdiction when it issued directives to MultiChoice to halt its subscription price hike before undertaking any investigation.
Interestingly, while siding with MultiChoice on the broader principle that Nigeria operates a free-market economy, the court still dismissed the company’s suit on procedural grounds.
Justice Omotosho stressed that regulatory agencies must operate strictly within the limits of the law and ensure due process is respected in their engagements.
It will be recalled that MultiChoice announced new subscription rates set to take effect from March 1, 2025, citing rising inflation. The move triggered public outcry and regulatory intervention. In response, the FCCPC summoned the pay-TV operator and threatened sanctions, prompting MultiChoice to seek court protection against enforcement measures.
Reaffirming his position, Justice Omotosho noted that while businesses like MultiChoice are entitled to set their prices within a free-market economy, regulatory actions must be grounded in due process. He warned that unilateral interventions by regulators without proper investigation risk undermining investor confidence and exceed the FCCPC’s lawful authority — yet MultiChoice’s attempt to protect itself via the court ultimately failed due to procedural missteps.
