FCCPC Summons Multichoice Over Exploitation Of Consumers

By Akinwale Kasali

Disturbed by the indiscriminate increment in its subscription price within nine months, the Federal Competition and Consumer Protection Commission, FCCPC, has summoned MultiChoice Nigeria, the operator of DStv and GOtv, to provide justification for the increments.

According to MultiChoice, a proposed subscription price increase is set to take effect from March 1, 2025.

There is  public outcry over the company’s recurrent price adjustments and concerns about potential anti-competitive practices in Nigeria’s pay-TV industry, and the insensitivity of the Company to the plight of Nigerians as the economic situation continues to worsen.

Ina statement FCCPC announced that it had invoked its authority under Sections 32 and 33 of the Federal Competition and Consumer Protection Act, FCCPA, to summon MultiChoice’s Nigeria’s Chief Executive Officer to an investigative hearing. The hearing is scheduled to take place on Thursday, February 27, 2025, at the Commission’s headquarters in Abuja.

The Commission expressed concerns that MultiChoice’s frequent price hikes and said it may constitute an abuse of market dominance and unfair pricing strategies.

“The FCCPC is deeply concerned that Nigerian consumers continue to face frequent price increases, amid accusations that MultiChoice applies different pricing strategies in other markets, heightening questions about fairness and market abuse,” the statement read.

Director of Corporate Affairs at the FCCPC, Ondaje Ijagwu, stressed that the Commission would not hesitate to take regulatory action if MultiChoice fails to provide a satisfactory explanation for the price adjustment.

The FCCPC also revealed that it is working alongside sector regulators and other relevant agencies to ensure fair competition and consumer protection in Nigeria’s pay-TV market. The Commission’s intervention reflects a broader effort to address long-standing concerns about affordability and transparency in subscription-based television services.

“Should MultiChoice fail to provide satisfactory explanations or be found in violation of fair market principles, the FCCPC will be left with no other option than to impose regulatory penalties, sanctions, or other corrective measures to protect Nigerian consumers,” Ijagwu stated.

MultiChoice Nigeria, which holds a significant share of the country’s pay-TV market, has faced repeated backlash from consumers over its pricing structure. Many subscribers argue that the company’s frequent price increases are not justified by improvements in service quality, while others accuse it of exploiting its market dominance to impose arbitrary charges.

It is believed that the upcoming investigative hearing could set a crucial precedent for regulating the pay-TV sector in Nigeria, potentially leading to more competitive pricing and improved service standards.

As the March 1 deadline for the price hike approaches, consumers across the country are keenly awaiting the outcome of the FCCPC’s intervention. Many hope that the regulatory scrutiny will lead to fairer pricing and greater accountability within the pay-TV industry.

“Should MultiChoice fail to provide satisfactory explanations or be found in violation of fair market principles, the FCCPC will be left with no other option than to impose regulatory penalties, sanctions, or other corrective measures to protect Nigerian consumers,” Ijagwu stated.