Court Rules FCCPC can regulate competition and consumer protection across all sectors, including telecom

The Federal High Court in Lagos has ruled that the Federal Competition and Consumer Protection Commission (FCCPC) has the legal authority to oversee competition and consumer protection in all sectors, including telecommunications. This decision reinforces the FCCPC’s power to regulate industry giants such as MTN Nigeria, ensuring fair market competition and consumer rights.

According to a statement released by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, the judgment, delivered on February 7 by Justice F.N. Ogazi, affirms that the Federal Competition and Consumer Protection Act (FCCPA) 2018 takes precedence over conflicting provisions in the Nigerian Communications Act (NCA) 2003. While the Nigerian Communications Commission (NCC) remains the sector-specific regulator, the court emphasized that it does not have exclusive authority over competition matters in the telecom industry.

Interpretation of Legal Jurisdiction

The court ruling clarified that Section 90 of the NCA 2003, which grants the NCC jurisdiction over competition matters in telecommunications, must be read alongside Section 104 of the FCCPA 2018. The FCCPA establishes the FCCPC as the primary regulatory body overseeing competition and consumer protection across all sectors.

Since the FCCPA is the more recent legislation, its provisions override any conflicting clauses in the NCA 2003. As a result, the court determined that the NCC does not hold exclusive competition regulatory authority in telecommunications. Instead, both regulators now share concurrent jurisdiction, fostering a coordinated approach to market regulation and consumer protection.

Legal Challenge by MTN Shareholder

The case was brought before the court by Emeka Nnubia, a shareholder of MTN Nigeria and a legal practitioner. He sought to halt the FCCPC’s investigation into MTN, arguing that regulatory oversight of the telecom company should fall solely under the NCC’s jurisdiction. He also contended that the FCCPC’s inquiry could breach data protection laws.

However, the court dismissed his claims, ruling that the FCCPC is the primary authority on competition and consumer protection, including in the telecommunications sector. Justice Ogazi reaffirmed that later legislation supersedes earlier conflicting laws, making the FCCPA 2018 the governing framework for competition regulation.

FCCPC’s Right to Investigate MTN

The ruling also validated the FCCPC’s authority to investigate MTN Nigeria for potential anti-competitive practices. The court upheld the commission’s right to issue summonses and requests for information from MTN as part of its ongoing inquiry.

It further stated that the FCCPC’s request for information did not violate the Nigeria Data Protection Act 2023 or the NCA 2003, as no personal data was sought. MTN is legally obligated to comply with the investigation in the public interest.

Collaboration Between FCCPC and Sector Regulators

The court also addressed concerns regarding the FCCPC’s interactions with other regulatory bodies. It held that the FCCPC does not require a Memorandum of Understanding (MoU) with sector regulators such as the NCC to exercise its statutory functions. Instead, it is the responsibility of sector regulators to engage with the FCCPC to define collaborative working arrangements.

Court’s Decision on Legal Costs

Despite ruling in favor of the FCCPC, the court chose not to impose costs on the losing party. It acknowledged that the case raised significant legal questions about the evolving regulatory landscape for competition and consumer protection in Nigeria. Due to the public interest nature of the case, the court decided that no legal costs should be awarded.

Implications of the Ruling

This judgment solidifies the FCCPC’s role as the leading authority in competition regulation and consumer protection across all industries, including telecommunications. The decision ensures that telecom operators like MTN Nigeria remain subject to scrutiny under the FCCPA 2018, promoting a competitive and consumer-friendly market environment.

With this ruling, the FCCPC now holds greater authority to prevent anti-competitive practices and enforce consumer rights across Nigeria’s economic sectors, reinforcing its mandate for fair market practices and corporate accountability.

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