FCCPC Summons MultiChoice to Justify Subscription Price Increase

The FCCPC has summoned MultiChoice Nigeria to explain its subscription price increases set for March 1, following complaints of recurrent unilateral hikes and concerns over market dominance. CEO of MultiChoice is expected to attend an investigative hearing. The proposed adjustments for DStv and GOtv packages come roughly one year after the last price review, prompting regulatory scrutiny to protect consumers.

The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice Nigeria to justify its intended subscription price hike set for March 1. This summons, announced by Mr. Ondaje Ijagwu, Director of Corporate Affairs at FCCPC, calls on the CEO of MultiChoice Nigeria to attend an investigative hearing at the FCCPC headquarters in Abuja on Thursday.

The commission’s concern arises from MultiChoice’s notification regarding the price adjustment, which has sparked worries about frequent unilateral price increases. Additional issues include potential market dominance and allegations of anti-competitive practices within the pay-television sector. Ijagwu expressed that the FCCPC is troubled by continuous price hikes affecting Nigerian consumers and noted discrepancies with pricing strategies in other countries, raising concerns about fairness and market exploitation.

Ijagwu further stated that if MultiChoice does not provide satisfactory justifications or is found to violate fair market principles, the FCCPC may resort to regulatory penalties or corrective measures to safeguard consumers. The FCCPC is collaborating with relevant sector regulators to promote equitable competition and protect consumer rights within Nigeria’s digital subscription and broadcasting industries.

On February 24, MultiChoice announced its planned price increase. The statement indicated that effective March 1, subscription prices would adjust for all DStv packages to sustain the provision of high-quality local and international content through advanced technology. The DStv Compact package will rise from N15,700 to N19,000, while other packages will see similar increases, with GOtv subscriptions also reflecting this price adjustment.

The decision for a price increase comes approximately one year after the last review by MultiChoice. This situation has prompted the FCCPC’s intervention, seeking to maintain fair practices in an industry that significantly impacts consumers’ everyday experiences.

The FCCPC’s summons of MultiChoice Nigeria highlights significant concerns regarding the proposed subscription price hikes scheduled for March 1. The commission aims to ensure that consumers are treated fairly amidst potential market dominance and anti-competitive behavior. This situation underscores the need for regulatory oversight in the broadcasting sector to protect consumer interests.

Original Source: nannews.ng