Justice James Omotosho of the Federal High Court Abuja has dismissed a suit filed by MultiChoice Nigeria, owners of DStv and GOtv, challenging the Federal Competition and Consumer Protection Commission’s (FCCPC) intervention in its recent subscription price hike.
Delivering judgment, Justice Omotoso ruled that the suit constituted an abuse of court process as similar proceedings were already pending in Lagos State.
He stressed that the plaintiff should have pursued its arguments in that court, rendering the current filing inappropriate.
Justice Omotoso, however, noted that while the FCCPC has investigative powers under its establishing Act, it lacks the authority to fix or suspend prices unless specifically delegated by the President through a gazetted instrument.
No such delegation was presented to the court.
He added that Nigeria operates a free market system, and service providers like MultiChoice retain the right to set their prices, with consumers free to accept or reject them.
The judge further ruled that FCCPC’s actions, including directing MultiChoice to suspend its price increase, breached the company’s right to fair hearing and appeared selectively targeted.
Justice Omotosho further dismissed the FCCPC’s claim that MultiChoice held a dominant market position, calling the argument untenable.
He added that the use of services like those provided by the plaintiff is discretionary and not essential, as Nigeria can do without it.
The judge further ruled that FCCPC’s actions, including directing MultiChoice to suspend its price increase, breached the company’s right to fair hearing and appeared selectively targeted.
He warned that attempts to fix prices by regulatory bodies could scare off investors and harm the economy.
The court held that while the FCCPC may investigate market practices, it cannot impose price controls without proper legal backing.