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Home Business

FCCPC Sues MultiChoice Nigeria Over Price Hike, Regulatory Violations

by Joan Aimuengheuwa
March 6, 2025
in Business
1
FCCPC Sues MultiChoice Nigeria Over Price Hike, Regulatory Violations
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MultiChoice

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The Federal Competition and Consumer Protection Commission (FCCPC) has sued MultiChoice Nigeria Ltd. and its Chief Executive Officer, John Ugbe, over alleged defiance of regulatory directives and obstruction of an ongoing investigation.

The commission had directed MultiChoice Nigeria on 27 February to maintain its existing subscription rates for DStv and GOtv while it conducted a review of the company’s proposed price increase. However, MultiChoice proceeded with the price hike on 1 March, disregarding the order.

In response, the FCCPC filed a lawsuit at the Federal High Court, Lagos Judicial Division, accusing MultiChoice and its CEO of wilfully obstructing the commission’s inquiry, impeding an ongoing investigation, and attempting to delude the regulatory body by proceeding with the hike despite clear objections.

The commission described the company’s move as a deliberate attempt to overlook regulatory oversight and market adequacy, stating that such conduct denies consumers the protections guaranteed by law. 

Beyond the legal proceedings, the FCCPC is also considering additional enforcement measures, including sanctions and penalties, to ensure compliance and accountability. 

The commission reiterated that it will continually protect consumers from exploitative businesses and hold all industry bodies accountable.

The Statement read in full:

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.

MultiChoice Nigeria had been expressly directed by the FCCPC on February 27, 2025 to maintain its current pricing structure for DStv and GOt pending the conclusion of an examination of its proposed price hike. However, despite this directive, the company proceeded with its price increase on March 1, 2025, in clear defiance of the Commission’s directive.

Following this blatant disregard for regulatory oversight, the FCCPC has filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court, Lagos Judicial Division, on three counts of offences under the FCCPA 2018, specifically for willfully obstructing the Commission’s inquiry by implementing a price hike contrary to directives (Section 33(4)), impeding the ongoing investigation by ignoring instructions to suspend the hike (Section 110), and attempting to mislead the Commission by proceeding with the increase without objection (Section 159(2), punishable under Section 159(4)(a) and (b)).

The Commission views MultiChoice’s actions as a deliberate and calculated attempt to undermine regulatory authority, disrupt market fairness, and deny Nigerian consumers the protection afforded under the law. By disregarding the FCCPC’s directive and implementing the price hike before appearing before the Commission’s investigative hearing on March 6, 2025, MultiChoice has not only flouted regulatory processes but also demonstrated a pattern of conduct that undermines consumer rights and fair competition.

In addition to these legal actions, the FCCPC is reviewing further enforcement measures, including sanctions, penalties, and regulatory interventions, to ensure compliance and accountability.

The FCCPC is committed to protecting Nigerian consumers from exploitative business practices and ensuring that dominant players in any sector adhere to fair market principles and legal compliance.”

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Tags: FCCPCJohn UgbeMultiChoice Nigeria
Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

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