The Federal Competition and Consumer Protection Commission (FCCPC) filed a suit against MultiChoice Nigeria Limited and its Chief Executive Officer, John Ugbe, over alleged violations of regulatory directives and obstruction of an ongoing inquiry.
The commission also accused the company of breaching provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
FCCPC Director of Corporate Affairs, Ondaje Ijagwu, disclosed this in a statement posted on the Commission’s X account.
He said: “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 had notified customers of a planned price increase across its DStv and GOtv packages, set to take effect on March 1, 2025.
Following the announcement, the FCCPC summoned MultiChoice Nigeria to provide explanations regarding the price review and directed the company’s Chief Executive Officer to appear for an investigative hearing on February 27, 2025, raising concerns over frequent price hikes, potential market dominance abuse, and anti-competitive practices within the pay-TV industry.
The FCCPC also warned that failure to justify the price adjustment or comply with fair market principles would lead to regulatory sanctions.
However, in defiance of the directive, MultiChoice implemented the new price on March 1, 2025.
Consequently, the FCCPC filed legal charges against MultiChoice Nigeria and John Ugbe at the Federal High Court, Lagos Judicial Division, on three counts: Obstruction of an inquiry: MultiChoice allegedly violated Section 33(4) of the FCCPA by implementing the price increase despite regulatory orders; Impeding an ongoing investigation: The company reportedly disregarded directives to suspend the price hike, contravening Section 110 of the FCCPA; and Providing misleading information: MultiChoice is accused of attempting to mislead the Commission by enforcing the price adjustment without addressing regulatory concerns. This breaches Section 159(2) and is punishable under Section 159(4)(a) and (b).
The Commission views MultiChoice’s actions as a deliberate attempt to undermine regulatory authority, disrupt market fairness, and deny Nigerian consumers protection under the law.
It said that by implementing the price hike before appearing at the Commission’s investigative hearing scheduled for March 6, 2025, the company is guilty of non-compliance with due regulatory process and consumer protection laws.