TechPression

Tag: FCCPC

  • FCCPC sues MultiChoice over DSTV, GOtv price hike violations

    FCCPC sues MultiChoice over DSTV, GOtv price hike violations

    MultiChoice Nigeria Limited and its CEO, John Ugbe, are facing legal action from the Federal Competition and Consumer Protection Commission (FCCPC) for allegedly violating regulatory guidelines and obstructing an ongoing investigation.

    Additionally, the commission charged the business with violating the requirements of the Federal Competition and Consumer Protection Act (FCCPA) 2018.

    Ondaje Ijagwu, the FCCPC’s Director of Corporate Affairs, revealed this in a statement that was uploaded on the Commission’s official X account on Wednesday.

    “The Federal Competition and Consumer Protection Commission (FCCPC) has formally instituted legal proceedings against MultiChoice Nigeria Limited and its Chief Executive Officer, John Ugbe, for violating regulatory directives, obstructing an ongoing inquiry and engaging in conduct deemed violations of the provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018,” the statement read.

    Read also: FCCPC invites MultiChoice over DStv, GOtv subscription increase

    MultiChoice’s price hike notification

    Techpression reported that MultiChoice has notified its clients of a price rise that would go into effect on March 1, 2025, for all of its DStv and GOtv packages.

    According to the notification, the DStv Compact bouquet will increase by 25% from N15,700 to N19,000 under the proposed change, and the Compact Plus bundle would increase by 20% from N25,000 to N30,000.

    Additionally, the top-tier DStv Premium plan would witness a 20% increase, going from N37,000 to N44,500.

    The price increase would also impact GOtv members, as the Supa Plus plan will increase from N15,700 to N16,800, among other changes.

    FCCPC summon to MultiChoice 

    FCCPC summons MultiChoice Nigeria to explain the price review in response to these anticipated hikes.

    The Commission invited the CEO to testify at an investigative hearing on February 27, 2025, concerning the company’s regular price increases, possible abuse of market dominance, and anti-competitive activities in the pay-TV sector.

    The FCCPC also sent out a strong warning, threatening to impose regulatory penalties if the price adjustment was not justified or if fair market principles were not followed.

    Maintaining the current pricing was “essential to prevent any potential consumer harm during this period,” the Commission said, emphasising consumer protection.

    MultiChoice defy FCCPC’s directive

    Nevertheless, MultiChoice proceeded with the price rise on March 1, 2025, in clear defiance of the Commission’s ruling.

    The FCCPC consequently brought three accusations against MultiChoice Nigeria and John Ugbe in the Federal High Court’s Lagos Judicial Division, which include:

    Obstruction of an inquiry, which contravened section 33(4) of the FCCPA by raising prices in defiance of court orders.

    Obstructing an ongoing investigation, which violated Section 110 of the FCCPA by ignoring orders to halt the price increase.

    Giving misleading information: MultiChoice is charged with trying to deceive the Commission by implementing the pricing change without taking regulatory issues into consideration. Section 159(2) is violated, and Section 159(4)(a) and (b) provide for punishment.

    Read also: MTN Nigeria CEO Toriola, others face trial over alleged copyright infringement

    Deliberate attempt to undermine regulatory authority

    According to the Commission, MultiChoice’s activities are a wilful attempt to subvert regulatory authority, sabotage market equity, and deprive Nigerian consumers of legal protection.

    The corporation has been charged with violating due process and consumer protection statutes by enacting the price increase before the Commission’s March 6, 2025, investigative hearing.

    Potential further sanctions

    In order to make sure MultiChoice complies with consumer protection legislation, the FCCPC has stated that it is examining further enforcement actions, such as possible penalties and regulatory interventions, in addition to the judicial procedures.

    The Commission reaffirmed its dedication to protecting Nigerian consumers from unfair corporate practices and making sure that major market participants follow the law and fair market principles.

  • MTN, GTBank, Air Peace probed over poor service, exploitative pricing claims

    MTN, GTBank, Air Peace probed over poor service, exploitative pricing claims

    Following a surge in consumer complaints, the Federal Competition and Consumer Protection Commission (FCCPC) has initiated investigations into three major Nigerian companies—Guaranty Trust Bank (GTBank), MTN Nigeria, and Air Peace Limited. 

    The enquiries are scheduled to last three days, specifically between December 3 and 5, 2024 in order to address allegations of poor service delivery and exploitative practices across the banking, telecommunications and aviation sectors.

    Read also: MTN, Huawei, and China Telecom collaborate to expand 5G, AI across Africa

    Overview of the investigations

    In a statement released on Sunday, FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, detailed the focus of these inquiries. The Commission aims to tackle issues such as:

    GTBank: The bank is under scrutiny due to a large volume of complaints about incessant network failures that have prevented customers from accessing their funds and digital banking services. This follows disruptions linked to the bank’s transition to a new core banking system in October 2024.

    MTN Nigeria: Customers have reported ongoing problems with undelivered data services, unexplained data depletion, and inadequate customer support. These issues have raised significant concerns among users regarding the reliability of MTN’s services.

    Air Peace Limited: The airline is facing allegations of exploitative ticket pricing, particularly concerning substantial fare increases for bookings on certain domestic routes. This has led to accusations of unfair pricing strategies that adversely affect consumers.

    Read also: MTN marks 25th anniversary with launch of Benin’s first commercial 5G network

    Legal framework and consumer rights

    The enquiries are being conducted under the Federal Competition and Consumer Protection Act (FCCPA) of 2018. This legislation empowers the FCCPC to investigate practices that may undermine consumer rights or disrupt market fairness. Ijagwu emphasised the importance of these inquiries by stating:

    “These engagements provide a platform for companies to address consumer concerns and clarify their operational practices.” 

    The Commission is committed to fostering a fair marketplace and ensuring accountability among service providers. It has urged consumers to report poor service or exploitative practices through its official channels.

    With the enquiries slated for next week, the FCCPC aims to resolve these issues swiftly while reinforcing its dedication to protecting consumer rights in Nigeria’s competitive landscape.

  • Online banking service interruptions: FCCPC to penalise banks

    Online banking service interruptions: FCCPC to penalise banks

    Nigerian banks have received a severe warning from the Federal Competition and Consumer Protection Commission about persistent outages that have affected customers’ access to online banking services.

    The commission voiced worries that frequent interruptions make it more difficult for clients to access money, send payments, and finish necessary activities.

    “These disruptions have negatively impacted millions and have serious implications for individuals and businesses alike,” stressed FCCPC Executive Vice Chairman and Chief Executive Officer Mr. Tunji Bello in a statement issued on Tuesday.

    Read also: Nigeria’s FCCPC fines Meta $220 million over ‘discriminatory practices’

    Customer’s rights under the law

    Customers have rights under the Federal Competition and Consumer Protection Act of 2018 that guarantee equitable and responsible service delivery, including the entitlement to high-quality service, the commission emphasised.

    According to Bello, the commission is working with financial institutions and pertinent regulatory bodies to resolve the service interruptions and guarantee that consumer protections are upheld.

    “The FCCPC is actively working with relevant regulatory authorities, financial institutions, and stakeholders to address these disruptions and ensure the protection of customers. The commission will pursue all necessary actions to uphold the protections of the FCCPA,” Bello promised.

    “To address the service disruptions and ensure consumer protections are enforced, the commission is currently working with relevant regulatory authorities and financial institutions,” Bello added.

    In order to handle these interruptions and guarantee consumer protection, the FCCPC is actively collaborating with pertinent regulatory bodies, financial institutions, and others. The commission will take all necessary steps to ensure that the FCCPA’s provisions are upheld,” Bello promised.

    The FCCPC pointed out that banks may violate these rules if they restrict access to necessary services, which could result in “significant financial hardship, loss of trust in the banking system, and damage to the overall economy.”

    Read also: Multichoice Nigeria Appeals N150 Million Fine

    Disruptions to online banking services as abuses of consumer rights 

    According to Bello, disruptions to online banking are increasingly being viewed as abuses of consumer rights as Nigeria’s economy transitions to a cashless system.

    The commission further emphasised that during service interruptions, service providers have a duty to communicate clearly and openly.

    According to the FCCPC, “regrettably, many consumers are left in the dark,” which exacerbates customer annoyance and feelings of neglect.

    According to Bello, the FCCPA’s consumer rights requirements are not met when there is a lack of clear communication.

    The FCCPC is examining the situation in response to these persistent problems to ascertain whether consumers’ rights to remedy are being respected.

    He urged banks and other financial organisations to act quickly to improve communication, prioritise customer service, and restore services.

    “We are committed to safeguarding the rights of Nigerian consumers and ensuring that every service provider adheres to the statutory mandates provided in the FCCPA 2018,” Bello said, assuring impacted customers that their issues were being taken seriously.

    Customers having issues with their banks were urged to lay their complaints through the FCCPC’S website or email.

  • WhatsApp’s threat to leave Nigeria seeks to sway public opinion, says FCCPC

    WhatsApp’s threat to leave Nigeria seeks to sway public opinion, says FCCPC

    Meta’s threat to leave the nation in response to the $220 million punishment has been regarded by the Federal Competition and Consumer Protection Commission (FCCPC) as an attempt to sway public opinion and pressure the commission to reconsider its ruling.

    It confirmed that the decision to penalise Meta Platforms Inc.—the company behind Facebook, Instagram, and WhatsApp—was based on justifiable worries about consumer protection and data privacy practices that went outside established legal frameworks.

    Read also: WhatsApp may exit Nigeria over $220 million FCCPC fine

    FCCPC’s $220M fine on Meta

    WhatsApp was ordered by the FCCPC last week to cease exchanging user data with Facebook subsidiaries and other parties without the user’s express authorisation, disclose data-collecting practices, and give users back control over how their data is used.

    After a thorough 38-month examination of Meta’s data privacy procedures and market conduct, the commission found that Meta had repeatedly violated both the Nigeria Data Protection Regulation and the Federal Competition and Consumer Protection Act.

    Consequently, it punished the parent business with $220 million for engaging in discriminatory activities against Nigerian users and unauthorisedly obtaining personal data without user consent.

    Understanding the Fine’s Impact on WhatsApp Services

    Even though the decision has been appealed, WhatsApp released a statement to the press on Thursday stating that the fine could impact the messaging platform’s services nationwide.

    This is because WhatsApp’s operation and user security rely on the parent company’s restricted data infrastructure.

    “WhatsApp relies on limited data to run our service and keep users safe, and it would be impossible to provide WhatsApp in Nigeria or globally without Meta’s infrastructure,” the WhatsApp spokesman stated in the response.

    “To prevent any negative effects on users, we are immediately appealing this order, which contains numerous errors and misrepresents how WhatsApp operates.”

    WhatsApp vs. FCCPC: A Regulatory Tug of War

    However, the Consumer Protection Commission responded late on Thursday night in a post on X (previously Twitter), alleging that the company discriminated against users in Nigeria compared to users in other jurisdictions and used its dominant market position by enforcing unjust privacy standards.

    The order, it continued, is a step in the right direction towards a just digital market in Nigeria.

    The statement said, “WhatsApp’s assertion that it would have to leave Nigeria due to the FCCPC’s recent order seems to be a calculated action meant to sway public opinion and possibly pressure the FCCPC to reevaluate its decision.

    Read also: Meta cracks down on 63,000 ‘Yahoo boys’ scam accounts

    Ensuring Compliance with Nigeria Data Protection Regulation

    The Nigeria Data Protection Regulation and the Federal Competition and Consumer Protection Act were purportedly broken by Meta Platforms and WhatsApp (collectively called the “Meta Parties”), and the FCCPC looked into these claims.

    According to the Commission’s findings, meta parties repeatedly violated the FCCPA and the NDPR.

    “These infringements included discriminating against Nigerian users compared to users in other jurisdictions, transferring and sharing data about Nigerian users without authorisation, denying Nigerians the right to control their data, and abusing their dominant market position by enforcing unfair privacy policies.”

    According to the appended statement, the final ruling mandates that Meta Parties stop abusing Nigerian consumers, adjust their business methods to conform to Nigerian regulations and respect their rights.

    “The FCCPC also imposed a $220 million financial penalty to ensure accountability for the alleged infringements and deter future violations.”

    “The FCCPC’s measures stem from justifiable worries about data privacy and consumer protection, and the order is a move in the right direction towards a more equitable digital market in Nigeria. Other legal systems implement similar policies without compelling businesses to exit the market. Nigeria’s situation won’t be any different, the statement said in closing.

  • WhatsApp may exit Nigeria over $220 million FCCPC fine

    WhatsApp may exit Nigeria over $220 million FCCPC fine

    The Federal Competition and Consumer Protection Commission (FCCPC) fined WhatsApp and Meta $220 million in Nigeria. Multiple data privacy infractions led to this fine, reflecting Nigerian authorities’ efforts to enforce data protection laws and protect consumer rights.

    Investigative background of Whatsapp

    The FCCPC investigated Meta and WhatsApp for three years, starting in May 2021. The investigator found multiple violations of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and the Nigeria Data Protection Regulation (NDPR) 2019.

    Read also: Meta cracks down on 63,000 ‘Yahoo boys’ scam accounts

    The panel determined that Meta and WhatsApp discriminated against Nigerian users by denying them data control. Unlike users in other regions, New WhatsApp users had to agree to data sharing for research.

    The examination found unauthorised platform transfers and the sharing of personal data, which breached local data protection legislation. According to the FCCPC, these methods abused supremacy and discriminated against Nigerian customers compared to those in other countries.

    Meta strongly disagreed with the FCCPC’s fine and wants to appeal. According to the corporation, data procedures are consistent globally, and users usually like them. However, the FCCPC has maintained that the penalties and final order enforce Nigerian laws and defend consumer rights.

    WhatsApp/Meta implications

    The $220 million judgment for Meta highlights the increased regulatory scrutiny of digital businesses globally. The FCCPC’s final order requires Meta and WhatsApp to comply with Nigerian law and the cash punishment. These include ending discrimination, transparent data management, and explicit user consent for data sharing.

    Read also: WhatsApp enhances safety in group chat with new features

    WhatsApp is Nigeria’s main communication app, so Meta’s exit might have significant repercussions. Millions of Nigerians use WhatsApp for personal and commercial interactions, making any disruption a significant issue.

    The FCCPC’s efforts against Meta and WhatsApp are part of its data privacy and consumer rights enforcement in Nigeria. The commission has reduced price gouging through numerous programs, promoting fair competition and improved consumer education. These activities promote market transparency and competition that benefits firms and consumers.

    Today’s digital age emphasises data protection and regulatory compliance, as shown by the FCCPC’s $220 million fine against Meta and WhatsApp. Meta’s appeal of the penalties will be eagerly monitored by parties globally. Nigerian customers expect such legislative efforts to improve data protection and tech company fairness.

  • Nigeria FCCPC investigates OPAY

    Nigeria FCCPC investigates OPAY

    The Federal Competition and Consumer Protection Commission will ask OPay about Nigerians’ claims of unauthorised accounts.

    The company’s Executive Vice Chairman and Chief Executive Officer, Babatunde Irukera, said this in response to Nigerians’ claims on Twitter that OPay was starting unapproved accounts for them.

    In response to these worries, Irukera tweeted, “OPAY is on its way to @fccpcnigeria to address and explain this and other strange things that customers have noticed in the last few days.” A new report will be out soon.”

    Earlier, in response to another tweet, the FCCPC CEO said, “OPay has been asked to come in and explain why there have been some strange things going on for the past few days.”

    Read also: OPay, Kuda among top fintech firms in 2023

    OPay offers licenced mobile money

    OPay is a licenced mobile money service that uses customers’ phone numbers as account names. During Nigeria’s recent cash shortage, the fintech’s services were more reliable than those of traditional banks, which were failing.

    We could not reach Irukera to find out if OPay had answered the commission’s summons.

    Kunle Adeyemi, who is the Head of Marketing for OPay, said that some of the people who were impacted may have worked with OPay in the past. These claims were made in reports that were confirmed.

    He said, “We saw these tweets yesterday, and we’re looking into what happened right now to ensure that everyone with a wallet is properly registered.” Some people may have used the platform at some point. Before we react, I must get feedback from inside the company based on what we find out.”

    Nigerian Fintechs Expand Workforces and Upskill Talent to Sustain Growth

    In a tweet, @hackSultan said, “I just checked, and everyone in my family and I have an OPay account. We’ve never set up an OPay account. How can this even be allowed?” Many other Internet users agreed with this, saying they have OPay accounts even though they’ve never used them.

    Many people on the Internet have now raised the alarm about this, even though they say they’ve never used the fintech’s services.

    “This is ridiculous,” @Cohannnnn wrote on Twitter. There is an OPay account for everyone.”

    @Busayo Otebata said, “I don’t have an OPay account, I’ve never opened one, and I’ve never done anything with OPay, but I can see my name on their banking app.”

  • Delisted lending apps increase to 37 in Nigeria

    Delisted lending apps increase to 37 in Nigeria

    Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) reports a sharp increase in lending app bans. Delisted loan apps have increased from nine to 37, indicating that people are becoming more concerned about how they work in the country, according to the survey.

    The FCCPC reported that ultimately approved loan applications increased from 154 to 164, while conditionally approved loan applications decreased from 40 to 38. The commission also said that their list of apps to monitor has risen from 20 to 56.

    The research demonstrates that the Google Play Store’s delisted apps are gone forever. This suggests that the commission is severe and that loan applications need more rigid rules.

    Swiftkash, Hen Credit Loan, Cash Door, and Joy Cash Loan Up to $1,000,000, Eaglecash, Luckyloan Personal Loan, and others were removed. The delisting process protects consumers from scam loan apps that prey on those in financial need.

    The FCCPC has regulated loan apps in Nigeria to ensure transparency and consumer rights. Within weeks, the commission reinstated 154 loan applications and gave them full clearance to operate in the country.

    The FCCPC has approved Clan, NextPayday, Aladdin Digital, Kobogo, and Paylater apps. The FCCPC has conditionally approved 40 more lending app companies, raising the total to 194 in Nigeria. 

    This conditional approval means these companies must meet stringent consumer protection rules. The commission sets high criteria for loan applications to boost business confidence and protect borrowers from harassment.

    Read also: Digital lending market in Nigeria grows as more loan apps get approval

    Google banned lending apps from gathering user data

    Google changed their personal loan app policy in May 2023, which could affect the business. The tech giant updated its Play Store Personal Loans policy to limit loan apps from accessing users’ sensitive data like images, external storage, videos, contacts, precise location, and call records, according to reports. 

    This came four years after Google introduced new regulations to protect customers from predatory loan apps multiplying in its store. Google’s new policy protects consumers against predatory loan practices that annoy borrowers. Changes took effect on May 31, 2023.

    The global commitment to consumer rights and predatory lending is shown through loan app delisting, regulatory measures, and policy improvements.

    Many Google Play apps, especially in Africa, seek potential users to allow them access to their devices’ most private data. 

    Apps claim these details are needed for credit checks or risk assessments. However, some victims have claimed that lenders blackmailed or harassed them using embarrassing or manipulated images from their phone’s contact book.

    Nigerian loan apps that use phone numbers illegally to be penalised

    FCCPC’s next step

    The FCCPC’s watchlist of loan applications is growing, indicating that the government is scrutinizing the industry. To identify and mitigate loan app risks and preserve fair lending, this increased control is essential.

    The FCCPC will continue to work with app developers, financial institutions, and consumer advocacy groups to ensure lending apps follow legal and ethical business practices.

    The commission will likely promote openness, responsible lending, and consumer understanding of loan app risks and rewards.

  • Sycamore Integrated Solutions distances itself from “Get Loan.”

    Sycamore Integrated Solutions distances itself from “Get Loan.”

    One of the listed digital money lenders accused of breaking the law through another app by the Federal Competition and Consumer Protection Commission (FCCPC), Sycamore Integrated Solutions Limited, has said that the Commission’s claim is false.

    According to the FCCPC report, the company claimed in a statement that it has nothing to do with “Get Loan,” a loan application that Sycamore is said to own.

    The company said the ‘Sycamore’ app is the only one it owns and uses.

    Sycamore said that it had also looked into the matter and found that the app in question was put on the Play Store by a different company that just used its name.

    It also said that it is working with security companies and the FCCPC to find out who made the “Get Loan” app.

    Read also: Sycamore, Nigerian fintech simplify loans, investments

    Sycamore’s statement 

    As a recognised and approved digital money lender, Sycamore denied any improper or forbidden conduct:

    Sycamore Integrated Solutions Limited (SycamoreNG) firmly denies that it is involved in the practise that has been stated and is not, in any way, involved or, in any fashion or form, with the app “Get Loan,” which we just became aware of following the FCCPC report in the news.

    “We categorically deny any connection between Sycamore Integrated Solutions Limited and “Get Loan” and their actions. Our only app is Sycamore.

    “From what we know so far, the “Get Loan” app was put on the Google Play store by someone other than Sycamore Integrated Solutions Limited.” This person or group sought to profit from Sycamore Integrated Solutions Limited’s name and reputation.

    However, we promise all of our cherished clients and users that Sycamore will continue to give them the same high-quality service and honesty they have always known. We still prioritize user safety.

    Since becoming aware of this problem, we have worked with the proper authorities, including the FCCPC, to identify and address the imposter responsible for these dishonest practices.

    “As a regulated money lender, we comply with all legal requirements, including FCCPC requirements, to ensure the highest standards of customer protection and data security. We are more committed to transparency and accountability in all our operations.”

    To further reassure its customers, the company said it has bolstered its customer support teams to address any queries, complaints, or concerns promptly.

    It also works with law enforcement and the FCCPC to find the imposters and bring them to justice. It does this by looking at and improving its verification methods to stop identity theft and scams.

    We realize Sycamore Integrated Solutions Limited’s situation is dire. We’re sorry the imposter caused you problems.

    “We still aim to solve this problem promptly and give our loyal Users the greatest security and service.

    “We hope that when the Federal Consumer Protection Commission (FCCPC) finishes its investigation, it will make public its findings, which we are sure will show that Sycamore Integrated Solutions Limited has nothing to do with this app or the alleged activities,” the business said.

    FCCPC’s claim

    In a statement, the FCCPC said that its findings showed that Sycamore Integrated Solutions Limited and Purple Credit Limited, two of its approved digital lenders, were using other apps to do things that were against the law.

    The Commission says that “Getloan” and “Cameloan” were both run by these two companies.

    Four online Apps to save dollars in Nigeria

    Sycamore Integrated Solutions Limited

    Sycamore Integrated Solutions Limited is a digital platform for peer-to-peer lending and borrowing that enables individuals and businesses to obtain the funds they desire when they need them. According to the information provided by the Corporate Affairs Commission, Sycamore was founded in 2018. Our unrelenting dedication to the safety and contentment of our customers continues unabated.

  • FCCPC prohibits PoS operators from increasing transaction charges

    FCCPC prohibits PoS operators from increasing transaction charges

    The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has taken a strong stance against Point of Sale (PoS) operators implementing a recently declared surge in charges for PoS transactions. 

    This was in response to the actions of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) to establish standardized prices for various transaction services. 

    The FCCPC has issued a prohibition and emphasized that price fixing is not permissible under the Federal Competition and Consumer Protection Act (FCCPA).

    The FCCPC recognizes a certain level of self-regulation within professions or trades but highlights the limitations imposed by the FCCPA. 

    The Act explicitly prohibits any agreement or coordination among undertakings or associations to fix prices, coordinate supply, or engage in activities that can disrupt the market, hinder innovation, and fail to benefit consumers or other businesses.

    Setting prices in a coordinated manner disrupts the market, hampers innovation and efficiency, and ultimately harms consumers and businesses not involved in such collaborations. The FCCPC emphasizes that price fixing is detrimental to fair competition and the overall economy.

    The FCCPC warns that severe penalties will be imposed on cartels or any form of coordinated behavior among competitors, including actions taken at the association level. 

    Violations of the FCCPA can result in financial penalties, legal action, and reputational damage. The Commission is committed to fully enforcing the law against businesses found to be directly or indirectly involved in prohibited conduct or agreements.

    Read also: Four simple steps to fix failed PoS transactions

    Intervention by the Central Bank of Nigeria (CBN)

    The recent surge in charges implemented by PoS agents in Nigeria has caught the attention of the Central Bank of Nigeria (CBN). 

    Recognizing the concerns raised by consumers and stakeholders, the CBN has announced its intention to intervene in addressing the issue. The CBN’s intervention aims to ensure that transaction charges remain reasonable, transparent, and in line with the interests of consumers and the broader economy.

    Investigation and Call for Consumer Support

    The FCCPC has initiated an investigation into the matter, demonstrating its commitment to enforcing fair competition and consumer protection.

    The Commission appeals to consumers to provide valuable and reliable information that can aid in the investigation and enforcement process. By sharing pertinent details, consumers can play an essential role in promoting fair competition, protecting their own interests, and contributing to a thriving marketplace.

    The FCCPC recognizes the importance of collaboration with industry stakeholders to address pricing concerns effectively. While the Commission acknowledges that self-regulation within professions or trades is acceptable to a certain extent, it underscores the need to comply with the FCCPA’s provisions.

     The FCCPC encourages dialogue between AMMBAN, PoS operators, and other relevant parties to find mutually beneficial solutions that align with fair competition and consumer welfare.

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    Focus on Consumer Protection

    The FCCPC’s prohibition on implementing the surge in transaction charges highlights its commitment to protecting consumers in Nigeria. 

    The Commission aims to ensure that transaction costs remain affordable and reasonable for consumers across various socio-economic segments. By actively enforcing regulations and curbing anti-competitive practices, the FCCPC seeks to promote a competitive environment that benefits both businesses and consumers.

    The FCCPC’s prohibition on PoS operators implementing the surge in transaction charges emphasizes its commitment to fair competition and consumer protection in Nigeria. By rejecting price fixing and announcing potential penalties for non-compliance, the regulatory body aims to foster an environment that encourages innovation, efficiency, and fair pricing for all stakeholders. 

    The investigation and collaboration with stakeholders, including the intervention by the CBN, demonstrate the importance of addressing concerns surrounding transaction charges in a comprehensive manner. Ultimately, the goal is to ensure that consumers are not unfairly burdened and that the Nigerian marketplace remains conducive to healthy competition and economic growth. 

  • FCCPC Investigates MultiChioce Company on Dominance Abuse

    FCCPC Investigates MultiChioce Company on Dominance Abuse

    The Federal Competition and Consumer Protection Commission ( FCCPC ) on Friday 18/3/2022 charged MultChoice Nigeria Limited a subsidiary of MultiChoice Group regarding an allegation of “abuse of dominance”.

    On August 28, 2022, the commission issued a notice of commencement of investigation (NCI) pursuant to Section 157 and 158 of the Federal Competition and Consumer Protection Commission Act, 2018 (FCCPC)

    How it started

    In July 2018, MultiChoice Nigeria announced the upward review of the monthly subscription rates for its cable television systems, DSTV and GoTV, with effect from August 1, 2018.

    Over time, the commission received a series of complaints about the service provider, this prompted the investigation in other to gather necessary information about the allegation

    “The commencement of this investigation was prompted by complaints to the
    Commission regarding allegations of abuse of dominant position by MCN.”

    On October 6, 2020, the commission commenced its investigation on MultiChioce Nigeria Limited requesting for information on its Nigerian subscribers’ market share, product price, distribution network, and content source and packaging in the form of relevant statistics; and also data was requested from other sources as well for validation.

    Read Also : Antitrust investigation The EU and UK Investigates Google and Meta for an online Advertising Deal.

    After a series of analyses, the commission sent the details of the finding to MCN
    “The Commission has prepared and delivered a detailed Investigative Report
    to MCN showing its findings with respect to the investigation.”

    FCCPC Verdict

    According to the Memorandum released on Friday 18/3/2022 by NCCPC and signed by Tam Tamunokonbia, the Director of Legal Service, the commission gave its verdict on the matter after much deliberation. It stated.

    THE COMMISSION PURSUANT TO ITS POWERS UNDER THE FCCPA, IN PARTICULAR, BUT NOT LIMITED TO SECTIONS 157, 158, AND 159 (1) (A), NOW HEREBY ORDERS AS FOLLOWS:

    That MultiChoice Nigeria Limited shall:

    1. For the purpose of ensuring that any material changes in key terms with respect
    to value propositions including, but not limited to cost or price, on account of its dominance, and to prevent consumers from being otherwise exploited, including by the conduct of other players in the market, MultiChoice shall introduce additional features prior to any proposed or contemplated changes in terms and conditions as identified in this Order to the extent that such change in price constitutes an increase in what consumers pay, regardless of any value addition. Such features should at a minimum include:

    a. A price lock option that allows subscribers to maintain the same subscription fee for a minimum period of one year subject to a contractual agreement that clearly specifies the applicable terms and conditions. MultiChoice Nigeria shall submit to the Commission a draft of this agreement within seven (7) days of receipt of this Order.

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    b. A better value for money proposition for annual prepayment of subscription, including the ability to suspend subscription at least once every quarter of the year.

    c. Clear communication to each subscriber regarding all channels available within their selected bouquet option. d. Any other value proposition MultiChoice considers appropriate and applicable, subject to adequate engagement with the Commission.

    2. Provide completely toll-free customer service lines which are operational 24 hours daily, and through which consumers may receive support with respect to their use of the services offered by MultiChoice Nigeria. These lines must be toll-free across networks, not only within the same networks as is presently the case. MultiChoice Nigeria must within the time stipulated in the Commission’s Order of February 4, 2022, provide the Commission with a work plan and timeline for the purpose of articulating, and addressing where possible and applicable, any constraints with respect to complying with, and operationalizing this specific Order.

    3. Advertise the existing toll-free customer service lines more frequently and more widely on channels available and under the control of MultiChoice on the DSTV and GOTV platforms. Such advertisement must run on each channel at least daily.

    4. Increase the number of times all subscribers may suspend their subscription up to at least four (4) times annually.

    5. Submit to the Commission a compliance report demonstrating full compliance with the above orders within the time stipulated in the Commission’s Order of February 4, 2022.

    Fines Compelled on MuiltiChoice

    Furthermore, part of the charges includes violation of the order of commission which attracts a fine/ penalty of five million naira (5,000,000) under the FCCPC Administrative Penalties Regulation 2020.
    “TAKE FURTHER NOTICE that in addition to other remedies, a violation of an Order of the Commission attracts a fine/penalty of N5,000,000.00 (Five Million Naira only) under the Federal Competition and Consumer Protection Commission (Administrative Penalties) Regulations, 2020.”

    What To Know About Federal Competition and Consumer Protection Commission ( FCCPC )

    The Federal Competition and Consumer Protection Commission (FCCPC) is Nigeria’s most prominent competition and consumer protection authority.
    FCCPA was passed in 2018 in order to ensure that all Nigerians have access to safe and affordable products as well as to defend their rights as consumers.

    Read Also : MTN group reaffirms its dedication to Nigeria

     

    About MultiChoice Nigeria Limited

    MultiChoice Nigeria Limited (MCN) is a MultiChoice Group (MCG) subsidiary. MCG operates video-entertainment subscriber platforms in Nigeria, South Africa, and 49 other Sub-Saharan African countries through its subsidiary, MultiChoice Nigeria (MCN), as well as satellite, digital terrestrial television (DTT), over-the-top (OTT), and related video-entertainment services for a monthly subscription fee.