FCCPC Takes Legal Action Against MultiChoice and CEO Over Price Hike and Regulatory Defiance
The Federal Competition and Consumer Protection Commission (FCCPC) has filed criminal charges against MultiChoice Nigeria and its CEO, John Ugbe, in the Federal High Court in Lagos. The charges stem from allegations that the company violated regulatory directives and obstructed an ongoing investigation.
The FCCPC has accused MultiChoice and Ugbe of intentionally hindering the commission’s inquiry by implementing a price increase for their DStv services, despite being expressly directed to refrain from such actions. This, the commission claims, violates Section 33(4) of its governing Act.
Additional charges also include the claim that the defendants impeded the ongoing investigation by ignoring an order to suspend the price hike and continuing with the increase without objection. These actions allegedly contravene Sections 110 and 159(2) of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
On February 24, MultiChoice announced a price increase for its DStv and GOtv subscription packages, scheduled to take effect on March 1, 2025. This move came less than a year after a similar price hike sparked public outcry and prompted intervention by the FCCPC.
In response to this announcement, the FCCPC directed MultiChoice’s CEO to appear at its headquarters on February 27 for an investigative hearing regarding the proposed increase. The commission also instructed the company to halt the price hike until the investigation was completed.
However, the FCCPC claims that MultiChoice went ahead with the price increase, disregarding the directives issued, in violation of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
The Consumer Protection Agency stated that the actions of MultiChoice and Ugbe were deliberate attempts to undermine regulatory authority, disrupt market fairness, and deprive Nigerian consumers of the protections guaranteed by law.
The FCCPC also emphasized that by defying its orders and implementing the price hike before the scheduled hearing on March 6, 2025, MultiChoice had violated regulatory procedures and demonstrated a pattern of behavior that threatened consumer rights and fair competition.
Alongside these charges, the FCCPC indicated that it was considering further enforcement actions, including potential fines and penalties, to ensure compliance with legal standards and uphold accountability.
The commission reassured the public of its commitment to defending consumers against exploitative practices and ensuring that market leaders adhere to fair competition and legal obligations.
