Court throws out Multichoice’s lawsuit against FCCPC over subscription price hike

In a major legal blow to Multichoice Nigeria, operators of DStv and GOtv, the Federal High Court in Abuja has dismissed the company’s suit against the Federal Competition and Consumer Protection Commission (FCCPC).

The case was aimed at stopping the FCCPC from interfering in Multichoice’s plans to increase subscription fees.

Delivering judgment on Thursday, Justice James Omotosho ruled that the suit was an abuse of court process. He pointed out that the matter was already the subject of an ongoing lawsuit filed by consumer rights activist Festus Onifade, which involves both Multichoice and the FCCPC.

The judge proceeded to decline jurisdiction and dismissed the suit.

However, Justice Omotosho went ahead to determine the case on the merit and held that since Nigeria runs a free market economy, the FCCPC lacked the power to interfere in the decisions of private companies to fix their prices.

The judge held that under Section 88 of the Federal Competition and Consumer Protection Act, it is only the president of the FRN that can regulate prices in a regulated industry and for essential goods, not the kind of services being rendered by the Multichoice where consumers have choices.

Justice James Omotosho held that the FCCPC has no business querying how companies fix their prices in a free market economy.