The Federal Competition and Consumer Protection Commission (FCCPC) has initiated legal proceedings against MultiChoice Nigeria Limited and its Chief Executive Officer, John Ugbe, over the company’s alleged non-compliance with regulatory directives concerning recent adjustments to subscription prices for DStv and GOtv services.
The development was announced on Wednesday by Ondaje Ijagwu, the Director of Corporate Affairs at the FCCPC. He confirmed that the commission had officially filed a lawsuit at the Federal High Court in Lagos, seeking legal redress over MultiChoice’s decision to implement a price hike despite regulatory objections.
The controversy surrounding the case began when MultiChoice Nigeria announced its intention to increase subscription fees for its pay-TV services, effective March 1, 2025. This decision was met with opposition from the FCCPC, which issued a directive on February 27, 2025, instructing the company to suspend the price adjustment until an ongoing investigation into its pricing structure and consumer protection concerns was concluded.
According to the FCCPC, MultiChoice disregarded the directive and proceeded with the price increment, prompting the commission to take legal action. The regulatory body emphasized that the company’s actions not only defied its authority but also raised serious concerns regarding compliance with consumer protection laws in Nigeria.
In its lawsuit, the FCCPC has leveled multiple allegations against MultiChoice and its CEO, John Ugbe, including:
- Obstructing an ongoing regulatory investigation.
- Failing to comply with directives issued under the Federal Competition and Consumer Protection Act (FCCPA) 2018.
- Deliberately attempting to mislead the commission regarding its pricing decisions and consumer policies.
The commission cited specific violations of Sections 33(4), 110, and 159(2) of the FCCPA, with penalties prescribed under Section 159(4)(a) and (b). These provisions outline potential legal consequences for businesses that fail to adhere to regulatory guidelines designed to ensure fair market practices and protect consumer interests.
The FCCPC strongly condemned MultiChoice’s actions, stating that the company’s defiance undermines the authority of the commission and poses a threat to consumer rights by potentially setting a precedent for non-compliance among other industry players.
Furthermore, the FCCPC expressed concerns that MultiChoice’s decision to implement the price hike before appearing at an investigative hearing scheduled for March 6, 2025, demonstrated a disregard for due process and regulatory oversight. The commission maintains that such actions could disrupt market fairness and limit consumer access to affordable services.
In response to MultiChoice’s continued resistance, the FCCPC has indicated that it may pursue additional enforcement measures, which could include sanctions, regulatory interventions, or financial penalties aimed at ensuring corporate accountability and compliance with Nigerian consumer protection laws.
MultiChoice, on the other hand, has defended its decision to adjust subscription fees, citing the rising costs of operations, inflation, and foreign exchange fluctuations as key factors influencing the price review. The company has maintained that the increase was necessary to sustain service quality and technological advancements in content delivery.
However, the ongoing legal battle has intensified the debate over consumer rights in Nigeria, with many subscribers expressing frustration over repeated price hikes and seeking greater regulatory intervention to curb what they perceive as exploitative pricing practices.
As the case unfolds, industry analysts and consumer advocacy groups are closely monitoring the proceedings, as the outcome could have significant implications for regulatory compliance, business practices, and consumer protection in Nigeria’s pay-TV industry.