The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice Nigeria, the operator of DStv and GOtv, to justify its planned subscription price increase, scheduled to take effect on March 1, 2025. The move comes amid growing concerns over the company’s recurrent price adjustments and potential anti-competitive practices in Nigeria’s pay-TV industry.
In a press statement issued on Tuesday, the FCCPC revealed that it had invoked its powers under Sections 32 and 33 of the Federal Competition and Consumer Protection Act (FCCPA) to summon MultiChoice Nigeria’s Chief Executive Officer to an investigative hearing. The hearing is slated for Thursday, February 27, 2025, at the Commission’s headquarters in Abuja.
The FCCPC’s action follows MultiChoice’s formal notification of its latest price adjustment, which has sparked widespread criticism from Nigerian consumers and raised red flags about the company’s pricing strategies.
The Commission expressed concerns that MultiChoice’s frequent unilateral price hikes could amount to market dominance abuse and anti-competitive behavior.
“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.
Ondaje Ijagwu, Director of Corporate Affairs at the FCCPC, emphasized that the Commission would not hesitate to take decisive action if MultiChoice fails to provide satisfactory explanations for the price hike. “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.
The FCCPC also disclosed that it is collaborating with sector regulators and other relevant agencies to ensure fair competition and consumer protection within Nigeria’s broadcasting and digital subscription landscape. This move signals a broader effort to address long-standing grievances about the lack of affordability and transparency in the pay-TV market.
MultiChoice Nigeria, which dominates the country’s pay-TV sector, has faced repeated backlash from subscribers over its pricing model. Critics argue that the company’s frequent price increases are not commensurate with the quality of service provided, while others accuse it of exploiting its market dominance.
The upcoming investigative hearing is expected to shed light on MultiChoice’s pricing strategies and their impact on Nigerian consumers. Industry analysts suggest that the FCCPC’s intervention could set a precedent for stricter regulation of the pay-TV sector, potentially leading to more competitive pricing and improved service delivery.
As the March 1 deadline for the price hike approaches, Nigerian consumers are eagerly awaiting the outcome of the hearing. Many hope that the FCCPC’s intervention will curb what they perceive as exploitative practices and ensure a fairer deal for pay-TV subscribers.
For now, all eyes are on MultiChoice Nigeria as it prepares to face the FCCPC’s scrutiny. The company’s response to the Commission’s concerns could determine the future of Nigeria’s pay-TV industry and its relationship with millions of subscribers across the country.
