Court to FCCPC: You lack authority to impose price controls without legal backing

A Federal High Court in Abuja on Thursday ruled that the Federal Competition and Consumer Protection Commission’s (FCCPC) lacked the power fix or suspend prices of service organizations like MultiChoice Nigeria, the parent company of DStv and GOtv, without a specific presidential delegation through a gazetted instrument.

It, however, acknowledged that FCCPC has investigative powers under its Act, but required presidential authority through a gazetted instrument, which was not presented in this case.

Delivering judgment, Justice James Omotoso said: “The power to fix prices is exclusively that of the President. Any decision taken without such delegation is a nullity.”

The judge had thrown out the suit by MultiChoice Nigeria, challenging intervention in its recent subscription price hike, describing it as an abuse of court process since similar proceedings were already pending elsewhere.

He emphasized that the plaintiff should have pursued its arguments in the other court, making the current filing procedurally improper.

Justice Omotoso added that Nigeria’s free market system allows service providers like MultiChoice to set their own prices, leaving consumers to decide whether to accept or reject them.

He further ruled that FCCPC’s actions, including directing MultiChoice to suspend its price increase, breached the company’s right to fair hearing and appeared selectively targeted.

He dismissed the FCCPC’s claim that MultiChoice held a dominant market position, calling the argument untenable.

He also said: “The use of services like those provided by the plaintiff is discretionary and not essential. Nigeria can do without it.”

The judge warned that attempts to fix prices by regulatory bodies could scare off investors and harm the economy.

The court ruled that the FCCPC can investigate market practices, but lacks the authority to impose price controls without proper legal backing.

Persecondnews recalls that MultiChoice increased its subscription rates by up to 25% on March 1, 2025, citing inflation and operational cost pressures.

The FCCPC had opposed the move, calling for regulatory oversight and warning of sanctions, which prompted the legal challenge of the raise in subscription fees in court.