Friday, March 28, 2025 - The Federal High Court in Abuja has fixed a date for judgment in the suit filed by MultiChoice Nigeria Limited against the Federal Competition and Consumer Protection Commission (FCCPC).
Justice James Kolawole Omotosho fixed the date for judgment on Thursday,
shortly after lawyers representing parties adopted and argued their written
addresses for and against the suit.
It will be recalled that the court had some days back restrained the
Commission from taking “any administrative steps” against the plaintiff
following an increase in the service price of two of its brands; DStv and GOtv.
The restraining order was a sequel to a formal request by MultiChoice
seeking the court’s protection from planned sanction from the FCCPC, over the
increase in price of DStv and GOtv.
At the resumed hearing on Thursday, March 27, the court granted the
Commission’s request for an extension of time to regularize its processes and
also allow the plaintiff to withdraw its application for interlocutory
injunction which has been overtaken by event.
Arguing its case, MultiChoice through its lead counsel, Moyosore
Onigbanjo SAN submitted that the bone of contention is “whether the defendant
has the right to control the price at which the plaintiff offers its services
to the public”.
While acknowledging the regulatory powers of the Commission, the lawyer
argued that the Act establishing the FCCPC did not confer on it the powers to
regulate prices or prevent anyone including the plaintiff from increasing its
prices.
Onigbanjo stated that the issue of whether the defendant can regulate
price has been litigated before between the two parties, adding that the
Tribunal had held that the Commission has no powers to regulate prices of goods
and services in the country, except the President of the Federal Republic of
Nigeria.
The Plaintiff’s lawyer also submitted that even the President who is
clothed with the powers to regulate prices has maintained “that his government
does not believe in price control” but, that prices are determined by market
forces of demands and supplies.
Plaintiff in addition submitted that if the FCCPC has no powers to
control price “where does he have the powers to prevent the plaintiff from
increasing price.
MultiChoice subsequently accused the FCCPC of discrimination,
stating that all businesses in the country have been increasing their prices in
line with economic conditions and inflation without the Commission raising an
eyebrow,
MultiChoice Nigeria urged the court to grant all the reliefs sought in
the suit marked: FHC/ABJ/CS/379/2025.
Lead counsel for the defendant, Prof Joe Agbugu, SAN, urged the court to
first address the cause of action; which is the the issue of increase in the
price of DStv and GOtv.
Agbugu disclosed that the Commission on February 25, wrote to the
plaintiff, after it announced a price increase effective from March 1, 2025.
According to him, MultiChoice was summoned to appear before the
Commission on February 27, “they wrote that it was not convenient and proposed
March 6. We then said that in the interim they should hold on with the price
increment “.
Agbugu further stated that “there was no issue of price regulation or
fixing as at the time the action commenced “.
Besides, he claimed that the statute establishing
the FCCPC gave it “powers to check exorbitant pricing” and also powers to
“regulate abuse of dominant position in the market” as it relates to prices and
passing of cost to the consumer.
“The plaintiff occupies a dominant position in television and
entertainment”, Agbugu claimed, adding that the case before the court is not of
price regulation but the powers of the Commission to investigate prices that
are deemed exploitative and abuse of dominant position.
“The Commission is not to tell you to use price A or B but to determine
that the price is exploitative” he said, “they ran away to be investigated over
their planned action.
“Our action is not about price fixing; the issue is about whether the
price is exorbitant…the mandate of the Commission is to protect the consumer “.
Responding, Justice Omotosho announced that, “judgment is reserved to May 8”.
0 Comments