FCCPC says only Presidential directive can change DSTV, GOTV price hike

The Federal Competition and Consumer Protection Commission (FCCPC) has stated that it can’t decide the price MultiChoice chooses for its pay television, DSTV and GOTV, but the Presidency can.

The South African-owned cable tv had hiked prices for its pay-to-view channels, a decision that has led to criticism of DSTV and GOTV among Nigerians. In the last three years, MultiChoice has raised subscription fees.

It was gathered that the changes were made shortly after the FCCPC issued operational guidelines regarding extension of lock subscription and free toll lines earlier this week, which Ripples Nigeria reported.

Following the price hike, FCCPC on Wednesday said it can’t control the pricing of the pay tv, as only companies have the discretion to do so, except a presidential intervention and gazetting.

Read also: MultiChoice risks N5m fine, as Nigerian govt sets new subscription rule for DSTV, GOTV

“Although we cannot, and did not regulate price except in limited circumstances requiring presidential approval and gazetting. As such, our order to MultiChoice did not prevent them from pricing their services in a manner acceptable between them and their subscribers.” FCCPC Executive Chairman Babatunde Irukera, said.

FCCPC can investigate excessive price hike

However, Irukera said FCCPC can regulate price gouging or investigate if the pricing is excessive or exploitative, which is determined by analysis of the increase and other factors leading to it.

“The nature of gouging is post-fact, meaning that when a price movement occurs, we can investigate to determine if it is excessive, exploitative, unrestored or manifestly unjust.

“Such is a very intricate investigation and the fact of the existence of any increase is not the entire evidence. There is a method to analyse the increase and other circumstances leading to it.” Irukera said.

He used the healthcare sector as an example, stating that some pharmacies are being prosecuted for taking advantage of the COVID-19 pandemic to implement inordinate increases of certain products.

“As in the case of pharmacies, we are prosecuting for inordinate increases of certain products during early stages of the COVID-19 pandemic.” The FCCPC boss stated.

Meanwhile, Irukera disclosed that the government agency will probe MultiChoice to ensure the company adhered to its directive on subscription lock option, amongst others.

“For now, the first check with MultiChoice is whether they implement, or intend to, a material change in terms and conditions (of which price is one) without the steps the Commission has mandated as conditions precedent.’’ Irukera explained.

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