The Federal Competition and Consumer Protection Commission (FCCPC) has instituted legal proceedings against MultiChoice Nigeria Limited and its Chief Executive Officer, John Ugbe, over alleged violations of regulatory directives and obstruction of an ongoing inquiry.
The commission also accused the company of breaching provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
This was disclosed by Ondaje Ijagwu, Director of Corporate Affairs at the FCCPC, in a statement posted on the Commission’s official X account.
“The Federal Competition and Consumer Protection Commission (FCCPC) has formally instituted legal proceedings against MultiChoice Nigeria Limited and its Chief Executive Officer, John Ugbe, for violating regulatory directives, obstructing an ongoing inquiry and engaging in conduct deemed violations of the provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018,” the statement read.
Backstory
Nairametrics reported that MultiChoice had informed its customers about a planned price increase across its DStv and GOtv packages, set to take effect on March 1, 2025.
- Under the proposed adjustment, the DStv Compact bouquet would rise from N15,700 to N19,000, reflecting a 25% increase, while the Compact Plus package would go up from N25,000 to N30,000, marking a 20% hike.
- The DStv Premium plan, the highest-tier package, would also see a 20% increment, increasing from N37,000 to N44,500. Similarly, GOtv subscribers would be affected by the price hike, with the Supa Plus plan set to rise from N15,700 to N16,800, among other adjustments.
- In response to these planned increases, FCCPC summoned MultiChoice Nigeria to provide explanations regarding the price review. The Commission directed the company’s Chief Executive Officer to appear for an investigative hearing on February 27, 2025, raising concerns over frequent price hikes, potential market dominance abuse, and anti-competitive practices within the pay-TV industry.
- The FCCPC also issued a stern warning, stating that failure to justify the price adjustment or comply with fair market principles would lead to regulatory sanctions.
Emphasizing consumer protection, the Commission stated that maintaining the current pricing was “essential to prevent any potential consumer harm during this period.”
However, despite this directive, MultiChoice went ahead with the price increase on March 1, 2025, in direct violation of the Commission’s instructions.
Legal charges
As a result, the FCCPC filed legal charges against MultiChoice Nigeria and John Ugbe at the Federal High Court, Lagos Judicial Division, on three counts:
- Obstruction of an inquiry: MultiChoice allegedly violated Section 33(4) of the FCCPA by implementing the price increase despite regulatory orders.
- Impeding an ongoing investigation: The company reportedly disregarded directives to suspend the price hike, contravening Section 110 of the FCCPA.
- Providing misleading information: MultiChoice is accused of attempting to mislead the Commission by enforcing the price adjustment without addressing regulatory concerns. This breaches Section 159(2) and is punishable under Section 159(4)(a) and (b).
The Commission views MultiChoice’s actions as a deliberate attempt to undermine regulatory authority, disrupt market fairness, and deny Nigerian consumers protection under the law.
By implementing the price hike before appearing at the Commission’s investigative hearing scheduled for March 6, 2025, the company has been accused of non-compliance with due regulatory process and consumer protection laws.
Further enforcement actions underway
Beyond the legal proceedings, the FCCPC has indicated that it is reviewing additional enforcement measures, including potential sanctions and regulatory interventions, to ensure MultiChoice complies with consumer protection laws.
The Commission reiterated its commitment to safeguarding Nigerian consumers against exploitative business practices while ensuring that dominant market players operate in accordance with fair market principles and legal regulations.
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