By Our Reporter
The Federal High Court on Thursday in Abuja dismissed a suit filed by MultiChoice Nigeria Limited challenging the intervention of the Federal Competition and Consumer Protection Commission (FCCPC) in the recent increase in DStv and Gotv subscription fees.
The judgement delivered by Justice James Omotosho, held that the suit constituted an abuse of court process since the same subject matter is pending before another court.
It held that the plaintiff ought to have ventilated its grievances against the FCCPC before that court instead of engaging in a multiplicity of actions.
However, Justice Omotosho faulted the FCCPC, noting that though its Establishing Act conferred it with investigative powers, it lacks the authority to fix or suspend prices unless specifically delegated by the President through a gazetted instrument.
The trial judge noted that no such instrument was adduced before the court.
“The power to fix prices is exclusively that of the president. Any decision taken without such delegation is a nullity,” the court added.
More so, it stressed that Nigeria operates a free market system where service providers like MultiChoice retain the right to set their prices, with consumers free to accept or reject them.
The court further ruled that FCCPC’s actions, including directing MultiChoice to suspend its price increase, breached the company’s right to a fair hearing, as it appeared to have been selectively targeted.
It also dismissed as untenable FCCPC’s contention that MultiChoice held a dominant market position.
“The use of services like those provided by the plaintiff is discretionary and not essential. Nigeria can do without it,” Justice Omotosho held, warning that attempts to fix prices by regulatory bodies could scare off investors and harm the nation’s economy.
According to the court, while the FCCPC may investigate market practices, it cannot impose price controls without proper legal backing.