Court Stops Federal Competition and Consumer Protection Commission (FCCPC) From Sanctioning Multichoice over Dstv, Gotv Tariff Hike.
The FCCPC had summoned MultiChoice Nigeria Ltd to provide explanations regarding the March 1 price review of its packages.
The commission directed the company’s chief executive officer to appear for an investigative hearing on Feb. 27, 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.
MultiChoice’s Contentions in Court
In the ex parte motion filed by MultiChoice’s legal team led by Onigbanjo, the company sought an order of interim injunction restraining the FCCPC and its officers from carrying out the threat against it, as communicated via a letter dated March 3, pending the hearing and determination of the motion for an interlocutory injunction.
It also sought an order restraining the commission and its officers from issuing any further directive or taking any steps capable of disrupting its business activities, pending the hearing and determination of the motion for an interlocutory injunction.
Onibanjo, in his grounds of argument, submitted that Nigeria operates a free-market economy where prices of goods and services are not regulated.
He argued that the FCCPC Act and other enabling laws do not grant the commission the authority to regulate prices or require businesses to seek approval before adjusting the cost of their services.
He added that MultiChoice had communicated its intention to increase prices via a letter dated Feb 21.
He said that the FCCPC, however, in a letter dated Feb. 27, ordered the pay-TV company to suspend its planned price increment.
The lawyer said following the development, the company filed a suit on March 3, challenging, among other things, the FCCPC’s power to regulate prices or suspend its price adjustment.
He said MultiChoice, after filing the suit, proceeded with the planned price increase.
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