The Federal Competition and Consumer Protection Commission (FCCPC) has taken legal action against MultiChoice Nigeria Limited and its Chief Executive Officer, John Ugbe, over allegations of disregarding regulatory directives concerning subscription price adjustments.
The FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, disclosed this development in a statement on Wednesday, revealing that the commission had filed charges at the Federal High Court in Lagos.
The charges stem from MultiChoice’s decision to proceed with a subscription price increase for its DStv and GOtv services on March 1, despite an earlier directive to suspend the hike.
According to the statement, the regulatory agency had, on February 27, instructed the company to halt its planned price increase until an ongoing investigation into the matter was concluded.
However, MultiChoice allegedly defied the directive, prompting the commission to pursue legal action.
The charges against MultiChoice and its CEO are based on three key allegations: obstructing the commission’s inquiry, failing to comply with regulatory directives, and attempting to mislead the agency.
The FCCPC cited specific violations under the Federal Competition and Consumer Protection Act (FCCPA) 2018, including Sections 33(4), 110, and 159(2), with penalties outlined under Section 159(4)(a) and (b).
The commission described the company’s actions as a direct challenge to regulatory authority, which could disrupt market fairness and undermine consumer rights.
It further criticized MultiChoice for proceeding with the price increase before appearing before an investigative hearing scheduled for March 6, 2025.
In addition to the lawsuit, the FCCPC is considering additional enforcement measures, including potential sanctions and regulatory interventions, to ensure accountability and compliance.
MultiChoice had previously informed its customers about the price review, citing rising operational costs as the reason for the adjustment.
However, the company’s decision to move forward with the increase despite regulatory objections has now led to a legal battle.
