The FCCPC has summoned MultiChoice Nigeria over planned subscription price hikes, effective March 1, prompting an investigative hearing at their headquarters. Concerns include recurring unilateral price increases and potential market dominance abuse. MultiChoice’s pricing adjustments come approximately one year after their last review. The FCCPC warns of possible regulatory penalties if satisfactory explanations are not provided.
The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice Nigeria to provide justification for its proposed subscription price increase, effective March 1. The summons was announced by Mr. Ondaje Ijagwu, the Director of Corporate Affairs at the FCCPC, during a statement in Abuja. He has directed MultiChoice’s Chief Executive Officer to attend an investigative hearing at the commission’s headquarters on Thursday.
This action stems from concerns regarding MultiChoice’s formal notification of the price adjustment, which raises questions about recurring unilateral price hikes. Additionally, the FCCPC highlighted potential issues of market dominance and alleged anti-competitive practices within the pay-television sector, emphasizing that Nigerian consumers are facing frequent price increases amidst accusations of varied pricing strategies in different markets.
Mr. Ijagwu stated, “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.” He further noted that should MultiChoice not provide adequate explanations or if found to violate fair market principles, the FCCPC may impose regulatory penalties to safeguard consumer interests.
On February 24, MultiChoice publicly announced a price increase for its services, set for March 1. In a notice titled “Price Adjustments for DStv and GOtv Packages,” the company informed customers of the new pricing, explaining that the adjustment is necessary for maintaining the delivery of high-quality content through advanced technology. The DStv Compact bouquet will rise from N15,700 to N19,000, while the Compact Plus subscription will increase to N30,000, and the Premium package will be priced at N44,500.
Furthermore, subscribers to GOtv will see their fees increase from N3,600 to N3,900, and the GOtv Plus subscription will rise from N4,850 to N5,800. This proposed adjustment occurs approximately one year after the last price revision by the company, raising further concerns among consumers regarding the frequency and rationale behind these increases.
In summary, the FCCPC’s decision to summon MultiChoice Nigeria is a response to the company’s announced price increase, set to take effect shortly. The commission is probing into the practices of MultiChoice amid concerns of market dominance and unfair pricing strategies affecting consumers. MultiChoice has been called to justify its actions, with potential penalties on the horizon if solutions are not reached. This inquiry reflects a broader effort to ensure fair competition in Nigeria’s broadcasting sector.
Original Source: nannews.ng
