MultiChoice Nigeria, the operator of DStv and GOtv, has been called by the Federal Competition and Consumer Protection Commission to provide an explanation for the proposed rise in subscription prices, which is scheduled to go into effect on March 1, 2025.
Ondaje Ijagwu, the Director of Corporate Affairs at the FCCPC, said in a statement on Tuesday that the regulator had directed MultiChoice’s CEO to show up at its headquarters on February 27 for an investigative hearing.
The summons follows the pay-TV company’s announcement on Monday that the subscription rate for its DStv Compact package would increase by 21 per cent, from N15,700 to N19,000, among other price increases.
Read also: MultiChoice increases DStv, GOtv subscription packages over operational cost
Subscribers were outraged by the price hike, and many of them vented their annoyance at the repeated price increases on social media.
Potential anti-competitive behaviour
In its statement, the consumer watchdog voiced worries about the frequent unilateral price rises and cautioned that they raise severe issues about potential anti-competitive behaviour, market abuse, and fairness.
“Exercising its mandate under Sections 32 and 33 of the FCCPA, the FCCPC directed the Chief Executive Officer of MultiChoice Nigeria to attend an investigative hearing at the commission’s headquarters on Thursday, February 27, 2025.”
“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.”
“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 partly read.
Read also: DStv’s festive surprise: 3 days of free access to all channels
Potential sanctions against MultiChoice
The regulator warned that failure to provide a satisfactory explanation or any violation of fair market principles could result in penalties, sanctions, or other corrective measures.
The FCCPC also confirmed that it is engaging the sector regulator and other relevant agencies to ensure fair competition and stronger consumer protection in Nigeria’s pay-TV industry.
According to MultiChoice, the parent firm of DStv and GOtv, the price hike is the result of rising operating costs in Nigeria.
The company’s last price review was about a year ago, for which the business also attributed high inflation rate and the growing expenses of doing business in Nigeria.
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