The Federal Competition and Consumer Protection Commission (FCCPC) has officially dropped the criminal allegations against MultiChoice Nigeria Limited and its senior executives following a mutually agreed settlement outside the courtroom.
This resolution was announced before Justice James Omotosho at the Federal High Court in Abuja on Tuesday, bringing an end to the extended legal confrontation between the regulatory body and the pay-TV operator.
Daniel Amadi, representing the FCCPC, informed the court that all disputes had been amicably resolved, leading to the submission of a withdrawal notice on August 16. With no objections from the defence, Justice Omotosho formally dismissed the case, closing the matter.
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The dispute attracted significant attention within Nigeria’s media and consumer sectors due to alleged breaches of the FCCPC Act, including non-compliance with regulatory summons and transparency requirements. The investigation initially focused on MultiChoice Nigeria’s pricing strategy and its response to the commission’s directives.
Origin of the MultiChoice-FCCPC Conflict: Price Adjustments and Regulatory Summons
The disagreement began when MultiChoice Nigeria raised the subscription fees for its GOtv and DStv services in March. The FCCPC summoned the company to an investigative hearing to clarify the rationale behind the price increases and to submit pertinent documentation.
The commission expressed concerns that recurrent subscription fee hikes could signal anti-competitive conduct and potential exploitation of market dominance, given MultiChoice’s leading position in the pay-TV industry.
On February 25, the commission formally requested that senior MultiChoice officials appear before investigators on February 27. The company’s failure to attend this session was deemed a breach of regulatory orders, prompting the FCCPC to initiate enforcement actions under the FCCPC Act of 2018.
Related: Court rejects MultiChoice’s attempt to raise DStv and GOtv subscription fees in Nigeria
Subsequently, a seven-count criminal charge was filed at the Federal High Court in Abuja. The FCCPC accused MultiChoice Nigeria, its Chairman Adewunmi Ogunsanya, Managing Director John Ugbe, and several executives from MultiChoice Africa Holdings of failing to comply with summons, obstructing the investigation, and withholding requested documents.
Before the trial commenced, representatives from both sides engaged in negotiations that spanned several weeks, culminating in a settlement agreement reached in August.
Resolution and Case Withdrawal Signal Conclusion of Legal Dispute
The withdrawal followed confirmation that MultiChoice Nigeria had adhered to regulatory protocols and cooperated with the FCCPC’s review process. As a result, the commission retracted its charges, enabling both parties to continue operations under a strengthened compliance framework.
By mid-August, the FCCPC’s legal team had formally notified the court of the case withdrawal. During the October hearing, the prosecution acknowledged the absence of any outstanding issues, and with no opposition from the defence, the court dismissed the case.
This development concludes months of legal tension that arose from the commission’s efforts to regulate pricing practices within the pay-TV market. The settlement paves the way for ongoing collaboration between the FCCPC and MultiChoice Nigeria.
Initially, the FCCPC warned that failure to justify the price increases could result in penalties. However, after MultiChoice submitted the necessary documentation, the commission opted for dialogue over litigation to foster compliance and protect consumers.
The outcome reflects a broader trend among Nigerian regulators favoring administrative negotiations to resolve compliance challenges rather than protracted court battles. It underscores the value of continuous engagement between regulatory authorities and industry players in sectors impacting consumers.
Despite the withdrawal, the FCCPC maintains its mandate to monitor pricing trends in the pay-TV sector. The commission remains vigilant in safeguarding competitive practices and consumer interests.
This case highlights the legal duty of companies to respond promptly to regulatory summons and provide requested information, as stipulated by the FCCPC Act. The legislation empowers the commission to demand records and pursue legal remedies when necessary, emphasizing the importance of cooperation to uphold regulatory integrity.
The issue surfaced amid MultiChoice’s subscription price review, which affected millions of Nigerian subscribers. The March price adjustments sparked consumer backlash, prompting FCCPC intervention to ensure the changes complied with market standards and consumer protection regulations.
The FCCPC reiterates its commitment to transparent regulation and the enforcement of fair market practices. It encourages businesses to maintain open communication with the commission to ensure adherence to consumer protection laws. This settlement demonstrates that with transparency and constructive dialogue, even complex disputes can be resolved efficiently without resorting to lengthy litigation.