The Federal Competition and Consumer Protection Commission (FCCPC) has taken legal action against MultiChoice Nigeria Limited and its Chief Executive Officer, John Ugbe, for allegedly disregarding regulatory directives on subscription price adjustments.
The lawsuit was filed at the Federal High Court in Lagos after MultiChoice increased the prices of its DStv and GOtv services on March 1, despite a directive from the FCCPC to halt the increment.
The commission had instructed the company on February 27 to suspend the planned price increase until an ongoing investigation was completed.
However, MultiChoice allegedly ignored this directive, prompting legal action.
The FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, disclosed this development in a statement on Wednesday, emphasizing that the commission viewed MultiChoice’s actions as a direct challenge to regulatory authority.
The charges against the company and its CEO are based on three key allegations:
obstructing the commission’s inquiry, failing to comply with regulatory directives, and attempting to mislead the agency.
According to the FCCPC, these violations fall under Sections 33(4), 110, and 159(2) of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
The penalties for these violations are outlined in Section 159(4)(a) and (b).
The commission stressed that such actions could undermine consumer rights and disrupt market fairness.
In addition to filing the lawsuit, the FCCPC is considering additional enforcement measures to ensure compliance.
The commission criticized MultiChoice for implementing the price hike before appearing at an investigative hearing scheduled for March 6, 2025.
“MultiChoice’s decision to increase subscription fees despite regulatory directives is a blatant disregard for consumer protection laws,” the statement read.
The FCCPC also warned that further regulatory interventions could be introduced if the company fails to comply with legal requirements.
The price increase has sparked widespread backlash from subscribers, many of whom believe that the hike is excessive and unfair.
Consumers have expressed concerns about affordability, arguing that MultiChoice should prioritize customer welfare over profit.
Meanwhile, MultiChoice has defended its decision, citing rising operational costs as the reason for the price adjustment.
The company insists that the price review was necessary to maintain service quality, despite the regulatory pushback.
With the lawsuit now in motion, MultiChoice faces potential sanctions, fines, and further regulatory scrutiny.
As the legal battle unfolds, all eyes will be on the court’s ruling and whether MultiChoice will be forced to reverse the price hike.
