FG sues MultiChoice, CEO over DStv, GOtv price hike

The Federal Competition and Consumer Protection Commission (FCCPC) has filed charges against MultiChoice Nigeria and its CEO, John Ugbe, for allegedly breaching regulatory directives and hindering an ongoing investigation.

A statement issued on Wednesday by Ondaja Ijagwu, FCCPC’s Director of Corporate Affairs, revealed that the charges stem from MultiChoice’s decision to increase subscription rates for its DStv and GOtv packages despite an explicit directive from the commission to suspend the hike.

On February 24, MultiChoice officially announced a subscription price increase set to take effect on March 1. This move, coming almost a year after the previous price hike, triggered public backlash, prompting the FCCPC to intervene. In response, the commission instructed Ugbe to appear for an investigative hearing on February 27 to discuss the price increase.

Despite this directive, MultiChoice proceeded with the hike as scheduled, prompting the FCCPC to take legal action.

The commission has filed charges against the company and its CEO at the Federal High Court in Lagos, citing three counts of violations under the Federal Competition and Consumer Protection Act (FCCPA) of 2018. These charges include: Obstructing the Commission’s Inquiry by implementing the price increase against regulatory orders (Section 33(4)). Impeding the Investigation by disregarding the suspension order (Section 110). Misleading the Commission by going ahead with the increase without proper clearance (Section 159(2).

The FCCPC emphasized that MultiChoice’s actions amounted to a deliberate attempt to undermine regulatory authority and disrupt fair competition. By implementing the price hike ahead of the March 6 hearing, the commission argued, MultiChoice not only defied regulatory processes but also violated consumer rights and fair market practices.

In addition to the legal charges, the FCCPC is exploring further enforcement actions, including sanctions and penalties, to ensure that MultiChoice complies with regulations and maintains accountability.

The commission reiterated its commitment to protecting Nigerian consumers from exploitative business practices, asserting that it would continue to enforce fair market principles and ensure legal compliance among dominant market players.