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Court Reserves Judgment on GOtv, DStv Price Increases in Nigeria till May 8

The Federal High Court in Abuja has scheduled May 8, 2025, to deliver judgment on the legal dispute between MultiChoice Nigeria Limited and the Federal Competition and Consumer Protection Commission (FCCPC) over recent price hikes for DStv and GOtv services. Justice James Omotosho set the date after hearing arguments from both parties.

The case revolves around MultiChoice’s decision to increase subscription fees for its pay-TV services and the FCCPC’s intervention, citing concerns about market dominance and anti-competitive practices. MultiChoice, through its lawyer Moyosore J. Onibanjo (SAN), filed an ex parte motion against the FCCPC under case number FHC/ABJ/CS/379/2025, seeking to prevent regulatory sanctions.

FCCPC’s Concerns

The FCCPC had previously summoned MultiChoice to justify its price adjustments, expressing worries about frequent increases, potential abuse of market dominance, and anti-competitive behavior. The Commission directed MultiChoice’s Chief Executive Officer to attend an investigative hearing on February 27, 2025.

According to the FCCPC, MultiChoice notified the Commission on February 25 about its planned price hike, effective March 1, 2025. The Commission asked the company to delay the increase until further investigation. However, MultiChoice later rescheduled the hearing to March 6, 2025, after which it proceeded with the price adjustment. The FCCPC argued this move obstructed its ongoing inquiry.

FCCPC’s counsel, Prof. Joe Agbugu (SAN), maintained that the agency has the authority to regulate abuses of market dominance under the FCCPC Act. He clarified that the Commission was not setting prices but ensuring fair market practices to protect consumers. He urged the court to dismiss MultiChoice’s case, emphasizing that unchecked price increases could harm consumers.

MultiChoice’s Defense

In response, MultiChoice’s legal team, led by Onibanjo, argued that Nigeria operates a free-market economy where service prices are not regulated by law. He contended that the FCCPC lacks the legal mandate to regulate or approve price adjustments, stating that such power can only be exercised with presidential approval.

Onibanjo dismissed the FCCPC’s claims of regulatory obstruction as an afterthought. He argued that the FCCPC’s letter focused solely on the price increase, a matter outside its jurisdiction. He maintained that the Commission’s attempt to intervene in MultiChoice’s pricing decisions was unlawful.

Background on Price Hikes

MultiChoice had announced a price increase for its DStv and GOtv packages, effective March 1, 2025. The adjustments included:
• DStv Compact: From N15,700 to N19,000 (25% increase)
• DStv Compact Plus: From N25,000 to N30,000 (20% increase)
• DStv Premium: From N37,000 to N44,500 (20% increase)
• GOtv Supa Plus: From N15,700 to N16,800

These adjustments came less than a year after a similar hike in May 2024, which MultiChoice attributed to inflation and rising operational costs. The frequent increases have drawn public backlash, with many Nigerians expressing frustration over the limited competition in the pay-TV market.

Legal Actions and Outcome

Following the price hike, the FCCPC summoned MultiChoice to explain its rationale and later filed a lawsuit at a Lagos High Court, alleging violations of regulatory directives and obstruction of the ongoing inquiry.

MultiChoice subsequently sought an interim injunction to prevent the FCCPC from prosecuting or imposing sanctions until the court resolves the interlocutory injunction motion. The company argued that the FCCPC was overstepping its legal boundaries.

After hearing arguments from both sides, Justice Omotosho reserved judgment for May 8, 2025. The ruling is expected to clarify the extent of the FCCPC’s authority over market pricing and could set a significant precedent for regulatory oversight in Nigeria’s pay-TV industry.

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