In a landmark judgment, the Federal High Court in Abuja has upheld the right of MultiChoice Nigeria Limited, operators of DStv and GOtv, to independently determine its subscription pricing, marking a significant victory for business autonomy and the principles of a free-market economy in Nigeria.
The case, brought by the Federal Competition and Consumer Protection Commission (FCCPC) after MultiChoice’s announcement of new subscription fee increases, was dismissed by Justice James Omotosho.
The court’s submission reinforces that Nigeria operates a free-market economy, and regulatory bodies cannot intervene in price-setting by private companies without express presidential approval.
Justice Omotosho addressed the merits of the dispute, holding that the FCCPC lacked the statutory authority to regulate or fix prices in the absence of presidential approval.
He clarified that under Section 88 of the Federal Competition and Consumer Protection Act, only the President can regulate prices in a regulated industry and for essential goods, not for services like those provided by MultiChoice where consumers have choices.
Read also: FCCPC files charges against MultiChoice for violating regulatory directives
The court ruled that the FCCPC does not have the legal authority to regulate or fix prices for pay-TV services; only the President of Nigeria can do so under specific circumstances.
The court found that Nigerians are not subject to predatory or unfair pricing by MultiChoice, as consumers have alternative choices in the pay-TV market.
MultiChoice’s pricing practices do not amount to abuse of dominance or unfair practices under the Federal Competition and Consumer Protection Act.
The judge emphasised that the FCCPC’s mandate is to investigate anti-competitive conduct, not to fix prices, and that any such regulatory intervention would require a clear directive from the presidency, which was not presented in this case. The court concluded that the FCCPC has no business querying how companies set their prices in a free-market economy.
Consumer advocacy groups have responded with a mix of relief and calls for continued vigilance, urging MultiChoice to ensure that future price adjustments remain fair and transparent. Economic analysts suggested that the ruling would boost investor confidence and set a clear precedent for other sectors facing similar regulatory challenges.
As the dust settles on this high-profile case, the judgment stands as a significant milestone in the ongoing evolution of Nigeria’s regulatory environment-balancing the need for consumer protection with the imperative of business autonomy and market-driven growth.
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