The Federal Competition and Consumer Protection Commission (FCCPC) has withdrawn the criminal charges against MultiChoice Nigeria Limited and its top management officials following an amicable out-of-court settlement.

This decision was made in the presence of Justice James Omotosho at the Federal High Court in Abuja on Tuesday, effectively concluding the prolonged legal dispute between the regulator and the pay-TV company.

The lawyer for the FCCPC, Daniel Amadi, informed the court that the decision was made after resolving all disputes between the two parties. He explained that a notice of withdrawal had been submitted on August 16 and that there were no further objections from the defence. Justice Omotosho then struck the case out, officially concluding the proceedings.

The case has caused a stir in Nigeria’s media and consumer industry due to alleged violations of the FCCPC Act, including failure to comply with regulatory summons and transparency obligations. It originated from inquiries into MultiChoice Nigeria’s pricing decisions and how the company responded to directives from the FCCPC.

MultiChoice dispute began over price review and regulatory summons

The conflict between the FCCPC and MultiChoice Nigeria started when the company increased the prices of its GOtv and DStv packages in March. The FCCPC had previously invited the PayTV company to attend an investigative hearing to explain the reasons behind the price hike and to present relevant documents.

The commission was concerned that frequent subscription hikes might indicate anti-competitive behaviour and potential market abuse, especially considering the company’s significant presence in the pay-TV sector.

MultiChoice then received a formal notice from the commission on February 25, asking senior officials to report to investigators on February 27. However, the company did not attend the session as required. As a result, the regulator considered this a violation of legal directives and began procedures to enforce the FCCPC Act of 2018.

Read also: Court dismisses MultiChoice’s bid to increase DStv, GOtv prices in Nigeria

A seven-count criminal complaint was subsequently filed at the Federal High Court in Abuja. In the complaint, the commission alleged that the company, along with its Chairman, Adewunmi Ogunsanya, its Managing Director, John Ugbe, and several executives from its parent company, MultiChoice Africa Holdings, failed to appear before the commission. They were also accused of hindering the investigation and declining to produce the requested documents.

However, before the court proceedings could commence, discussions began between representatives of both parties. The two parties entered into settlement talks that continued for weeks, ultimately resulting in a mutual agreement in August.

Settlement and withdrawal mark the end of legal hostilities

The decision to withdraw the case was made after it was confirmed that MultiChoice Nigeria had acted in accordance with regulatory requirements and complied with the FCCPC’s review process. Consequently, the commission withdrew its case against MultiChoice Nigeria, allowing both parties to operate under an enhanced compliance framework.

By August 16, the commission’s attorney had issued a written notice of withdrawal. When the case was heard in October, the prosecution informed the court that there was no longer a case to be decided. The defence did not object, and as a result, the court dismissed the case.

The withdrawal ends months of legal contest that began when the commission decided to regulate price practices in the pay-TV sector. The settlement, therefore, lays the ground for continued regulatory engagement between the FCCPC and MultiChoice Nigeria.

The FCCPC had earlier warned that failing to justify the price increase could lead to sanctions. However, after the company provided the necessary documents, the commission chose negotiation over litigation to promote compliance and consumer protection.

The settlement reflects Nigerian regulators’ growing preference for resolving compliance issues through administrative negotiations instead of lengthy court cases. It also highlights the importance of ongoing communication between regulators and operators in consumer-impacting sectors.

The withdrawal does not impact the commission’s overall responsibility to monitor price changes in the pay-TV industry. The FCCPC will continue to oversee consumer markets to safeguard against behaviours that could limit competition or harm consumer welfare.

The case emphasises the legal obligation of businesses to promptly respond to regulators’ summons and provide requested information, as per the FCCPC Act. This act empowers the commission to request records and pursue legal action if necessary, highlighting the importance of cooperation in maintaining regulatory trust.

The issue emerged during MultiChoice’s price increase review, affecting millions of subscribers in Nigeria. The March review raised all subscription packages, prompting protests from consumers. The FCCPC intervened to ensure the increases aligned with market conditions and consumer protection laws.

The FCCPC highlights its commitment to regulation-based operations and enforcing honest market practices. It encourages companies to communicate openly with the commission to ensure they comply with consumer protection laws. This settlement illustrates that with proper engagement and transparency, even complex disputes can be resolved without drawn-out legal battles.