FCCPC has summoned MultiChoice Nigeria over its planned DSTV and GOtv price hike, citing concerns of market abuse and unfair pricing. Could regulatory penalties follow? Read more!
The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice Nigeria over its latest decision to increase subscription rates for its DStv and GOtv services, raising concerns of market abuse and anti-competitive practices.
In a statement issued on Tuesday, Ondaje Ijagwu, FCCPC’s Director of Corporate Affairs, disclosed that MultiChoice Nigeria’s CEO has been directed to appear before the commission on Thursday for an investigative hearing. This follows the company’s formal notification of a price increase set to take effect on March 1, 2025.
According to an email sent to customers and obtained by TheCable, MultiChoice plans to raise the price of its DStv Premium package from N37,000 to N44,500, while the Compact+ bouquet will rise from N25,000 to N30,000. Other packages are also expected to experience similar hikes.
FCCPC Raises Alarm Over Unilateral Price Increases
The FCCPC has expressed strong concerns regarding the frequency of MultiChoice’s price adjustments, which have sparked consumer dissatisfaction and raised questions about possible exploitation in the pay-TV market. The commission, invoking its authority under Sections 32 and 33 of the Federal Competition and Consumer Protection Act (FCCPA), has described the increase as a potential case of market dominance abuse.
“This action follows MultiChoice’s formal notification of the price adjustment, which raises concerns about recurrent unilateral price hikes, potential market dominance abuse, and perceived anti-competitive practices in the pay-TV industry,” Ijagwu stated.
He further noted that Nigerian consumers are burdened with frequent price increments, despite allegations that MultiChoice operates different pricing strategies in other countries. This disparity, he said, fuels suspicions of unfair trade practices and could warrant regulatory intervention.
Regulatory Crackdown Imminent if MultiChoice Fails to Justify Price Hike
FCCPC has warned that if MultiChoice fails to provide a satisfactory justification for the latest price increase, the company could face stiff regulatory penalties, sanctions, or other corrective actions aimed at protecting Nigerian consumers from unfair pricing structures.
The commission also revealed that it is working closely with the broadcasting sector regulator and other relevant government agencies to ensure fair competition and consumer protection in the digital subscription industry.
“Nigerian consumers deserve fairness and accountability from service providers, and we will take all necessary steps to ensure that market players adhere to regulations that prevent exploitative practices,” the FCCPC stated.
Public Outrage and Consumer Advocacy Groups React
The latest price increase has drawn backlash from subscribers and consumer advocacy groups, who have long accused MultiChoice of arbitrary pricing and monopolistic tendencies. Many Nigerians have taken to social media to express their frustration, with some calling for regulatory intervention to either curb the increases or introduce viable competition into the pay-TV sector.
As the scheduled hearing approaches, all eyes are on MultiChoice to see whether the company will be able to justify its pricing policies or face regulatory consequences.
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