Nigerian competition agency sues MultiChoice over price hike

Nigeria's competition commission is suing the local unit of MultiChoice Nigeria, Africa's biggest pay television company, and its chief executive, John Ugbe, for violating regulatory directives, the watchdog said on Wednesday.

The Federal Competition and Consumer Protection Commission (FCCPC) asked MultiChoice Nigeria last month to maintain its pricing structure for its pay-TV business DStv and GOtv pending the conclusion of a review of its proposed price hike.

Despite the directive, the company proceeded with its price increase on March 1, in clear defiance of the commission's directive, the FCCPC said.

"Following this blatant disregard for regulatory oversight, the FCCPC has filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court, Lagos Judicial Division, on three counts of offences ... for willfully obstructing the commission's inquiry by implementing a price hike contrary to directives," the competition agency said in a post on X.

MultiChoice Nigeria could not be reached immediately for comment.

MultiChoice Group last year reached a settlement with Nigerian tax authorities for its local subsidiary and agreed to pay a total tax amount of about $37.3m (R674.2m).