A Nigerian Court Rejected MultiChoice's Attempt to Raise the Subscription Fees for Its DStv and GOtv Services in Nigeria

A Nigerian court has rejected MultiChoice’s attempt to raise the subscription fees for its DStv and GOtv services in Nigeria. The Federal High Court in Abuja dismissed MultiChoice Nigeria Limited’s request to uphold its recent price increases, marking a significant win for the Federal Competition and Consumer Protection Commission (FCCPC) and Nigerian consumers. Justice James Omotosho, who presided over the case, ruled that the court could not entertain the suit because a similar case was already being heard elsewhere, and described MultiChoice’s application as an “abuse of court process” since the arguments should have been made in the other pending case.

The dispute began when MultiChoice announced a price hike for its DStv and GOtv packages, which was set to take effect on March 1, 2025. The company explained the increase by pointing to inflation and rising operational costs. For example, the DStv Compact package was to rise from N15,700 to N19,000, a 25% increase, while the DStv Premium package would go from N37,000 to N44,500, a 20% increase. GOtv subscribers also faced higher fees, with the Supa Plus package increasing from N15,700 to N16,800. This move came less than a year after a previous price hike, and it sparked outrage among many Nigerians, who felt the increases were unfair, especially given the country’s economic challenges.

In response to the backlash and concerns about possible abuse of market dominance, the FCCPC summoned MultiChoice to an investigative hearing on February 27, 2025, and ordered the company to keep its prices unchanged until the probe was complete. However, MultiChoice went ahead with the price increase, arguing that Nigeria operates a free-market economy and that the FCCPC does not have the legal authority to set or suspend prices unless specifically directed by the President through an official gazette-which had not happened in this case.

Nigerian Court rejected MultiChoice's attempt to raise the subscription fees

MultiChoice’s lawyers argued that the company’s subscription rates in Nigeria are among the lowest in the region and that the price adjustments were necessary to keep the business running. They also claimed that the FCCPC was unfairly targeting MultiChoice while ignoring similar price increases by other service providers. Meanwhile, the FCCPC maintained that its main concern was not price regulation, but preventing possible abuse of market power and protecting consumers from unfair practices.

Justice Omotosho, in his ruling, made it clear that while the FCCPC has the power to investigate market activities, it cannot impose price controls without proper legal backing. He stressed that Nigeria operates a free-market economy, where businesses have the right to set their prices and consumers are free to accept or reject them. The judge also noted that services like DStv and GOtv are not essential, and Nigeria can do without them. He warned that attempts to fix prices by regulatory bodies could scare away investors and harm the economy.

The court’s decision to reject MultiChoice’s subscription fees raise has been welcomed by consumer groups and many Nigerians, who see it as a victory for consumer rights. The FCCPC has also expressed satisfaction with the ruling, stating that it will continue its investigation into MultiChoice’s pricing and operations, and may impose penalties if violations are found.

The Nigerian court rejected MultiChoice’s attempt to raise the subscription fees for DStv and GOtv, upholding the principle that while businesses can set their prices in a free market, regulatory bodies like the FCCPC have the authority to investigate and intervene if there are concerns about unfair practices or abuse of dominance. The court’s decision reinforces the protection of consumers and the importance of following due process in regulatory matters.

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