MultiChoice Nigeria has been summoned before the Federal Competition and Consumer Protection Commission (FCCPC) to defend its planned hike in subscription fees, which would go into effect on March 1.
Ondaje Ijagwu, the spokesman for the FCCPC announced in Abuja on Tuesday, which included MultiChoice’s summons.
According to Mr Ijagwu, MultiChoice Nigeria’s CEO was instructed by the commission to attend an investigation hearing at the commission’s headquarters on Thursday.
He said that the move came after MultiChoice formally announced the pricing change, which sparked worries about frequent, one-sided price increases.
Additional worries, according to Mr. Ijagwu were alleged anti-competitive behaviour in the pay television sector and possible abuse of market dominance.
“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.
”Should MultiChoice fail to provide satisfactory explanations or be found in violation of fair market principles, the FCCPC will be left with no other option than to impose regulatory penalties, sanctions, or other corrective measures to protect Nigerian consumers.
”The FCCPC is engaging the sector regulator and other relevant agencies to ensure fair competition and consumer protection within Nigeria’s broadcasting and digital subscription landscape,” he said.
On February 24, MultiChoice announced a proposed price increase for its services, set to take effect from March 1.
MultiChoice informed its customers in a statement entitled “Price adjustments for DStv and GOtv packages.”
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According to the company, its latest price review will hike the DStv Compact bouquet from N15,700 to N19,000, the Compact Plus to N30,000, and the Premium subscription to N44,500.
MultiChoice said, “GOtv customers, who currently pay N3,600, will now pay N3,900, while the subscription fee on GOtv Plus will increase from N4,850 to N5,800.”
The proposed increase is coming roughly one year after its last price review.
