Tariff Hike: Court announces date for judgment in MultiChoice suit against FCCPC

 The Federal High Court in Abuja has scheduled a date for judgment in the lawsuit filed by MultiChoice Nigeria Limited against the Federal Competition and Consumer Protection Commission (FCCPC).

Tariff Hike: Court announces date for judgment in MultiChoice suit against FCCPC

Justice James Kolawole Omotosho set the judgment date on Thursday, following the arguments presented by the lawyers for both parties regarding their written submissions.


Recently, the court had issued a restraining order preventing the FCCPC from taking any “administrative steps” against MultiChoice due to a price increase for its services, specifically for DStv and GOtv. This order was granted in response to MultiChoice's request for protection against potential sanctions from the FCCPC related to the price hike.


During the hearing on March 27, the court approved the FCCPC's request for additional time to regularize its processes and allowed MultiChoice to withdraw its application for an interlocutory injunction, which had become irrelevant.


In presenting its case, MultiChoice, represented by lead counsel Moyosore Onigbanjo SAN, argued that the central issue is whether the FCCPC has the authority to control the pricing of services offered by MultiChoice. While acknowledging the Commission's regulatory powers, Onigbanjo contended that the Act establishing the FCCPC does not grant it the authority to regulate prices or prevent any entity, including MultiChoice, from raising its prices.


Onigbanjo further noted that this issue of price regulation has been previously litigated, with a Tribunal ruling that the FCCPC lacks the power to regulate prices of goods and services, a power reserved for the President of Nigeria.


Additionally, the plaintiff's lawyer pointed out that even the President, who has the authority to regulate prices, has stated that his administration does not support price control, asserting that prices should be determined by market forces of supply and demand.


MultiChoice also accused the FCCPC of discrimination, highlighting that many businesses in the country have been raising their prices in response to economic conditions and inflation without any intervention from the Commission.


MultiChoice Nigeria has requested the court to grant all the reliefs sought in the case marked FHC/ABJ/CS/379/2025.


The lead counsel for the defendant, Prof. Joe Agbugu, SAN, emphasized that the court should first address the core issue: the increase in subscription prices for DStv and GOtv.


Agbugu revealed that the Commission had written to the plaintiff on February 25, following the announcement of a price increase set to take effect on March 1, 2025.


He noted that MultiChoice was summoned to appear before the Commission on February 27, but they responded that it was inconvenient and proposed March 6 instead. In the meantime, they requested that the price increase be put on hold.


Agbugu further asserted that there was no issue of price regulation or fixing at the time the action commenced.


Additionally, he claimed that the statute establishing the FCCPC grants it the authority to check exorbitant pricing and regulate the abuse of dominant market position concerning pricing and cost transfer to consumers.


“The plaintiff occupies a dominant position in television and entertainment”, Agbugu claimed, adding that the case before the court is not of price regulation but the powers of the Commission to investigate prices that are deemed exploitative and abuse of dominant position.


“The Commission is not to tell you to use price A or B but to determine that the price is exploitative” he said, “they ran away to be investigated over their planned action.


“Our action is not about price fixing; the issue is about whether the price is exorbitant…the mandate of the Commission is to protect the consumer “.

Responding, Justice Omotosho announced that, “judgment is reserved to May 8”.

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