Court affirms FCCPC’s regulatory authority in the telecom industry

A Federal High Court in Lagos has ruled in favour of the Federal Competition and Consumer Protection Commission (FCCPC) in a telecoms regulatory authorization dispute involving the commission and telecoms provider, MTN Nigeria. The verdict further affirms the commission’s regulatory authority over competition and consumer protection in the telecom industry. 

The mobile network operator through its lawyer, Emeka Nnubia, had approached the court to prevent the FCCPC from investigating MTN Nigeria, arguing that the Nigerian Communications Commission (NCC) was the sole regulator of the telecom sector.

MTN Nigeria also holds that the commission’s action could be a breach of data protection laws. 

The court ruling, delivered by Justice F.N. Ogazi maintained that Section 90 of the Nigerian Communications Act 2003, which grants the NCC jurisdiction over competition matters in telecom, must be read alongside Section 104 of the Federal Competition and Consumer Protection Act (FCCPA) 2018.

It stated further that the FCCPA established the commission as the primary regulatory authority on competition and consumer protection across all sectors including the telecom industry. 

In addition, the court held that the FCCPA, being later legislation, “supersedes conflicting provisions of the NCA 2003 to the extent that they seek to exclude FCCPC’s oversight in the telecommunications industry.” 

This also means that the communication regulator does possess full control, but both regulators share jurisdiction over the competition regulator in telecom. 

Also Read: 50% tariff increase: FCCPC warns MTN, Airtel, Glo against poor network, data depletion, etc.

Ruling on anti-competitive practice and data violation

The Federal High Court in Lagos also upheld FCCPC’s right to investigate MTN for potential anti-competitive practices.

The court held that the commission acted within its statutory powers in issuing a summons to MTN Nigeria as part of its ongoing inquiry. It emphasized that the commission’s summons and request to produce was found to be lawful within the scope of FCCPC’s investigative powers.

On the data protection violation claims, the court clarified that FCCPC’s request for information from MTN did not violate any data protection laws, including the Nigeria Data Protection Act 2023 and the NCA 2003.

“No personal data was requested, and MTN’s obligation to disclose information in the public interest is a legitimate basis for compliance with FCCPC’s inquiry,” the ruling expressed. 

The verdict pointed out that it is the responsibility of sector regulators to work with the FCCPC and that the commission does need not create a Memorandum of Understanding with sector regulators before enforcing its statutory functions.

“Entering into a Memorandum of Understanding with sector regulators is not a condition precedent for FCCPC’s enforcement of its statutory functions. Instead, it is the obligation of sector regulators to engage with FCCPC to define working arrangements, not the other way round,” the court stated. 

The court ruling has thereby rejected any attempt to hinder FCCPC from carrying out its statutory mandate, adding that preventing the commission from discharging its duties violates the doctrine of separation of powers enshrined in the Constitution.

Previous FCCPC regulatory actions

This development further foregrounds FCCPC regulatory actions in the telecom sector which reflects its commitment to safeguarding consumer rights, fostering a fair marketplace, and ensuring accountability across all sectors. 

Recall that the commission embarked on a major investigation in December into what it described as widespread consumer complaints against leading commercial banks, Guaranty Trust Bank (GTBank) and MTN, Nigeria. 

The commission described the action as a reaction to address issues of poor service delivery, exploitative practices, and potential consumer rights violations by the companies.

In the same vein, the regulator, in its press release last month, warned service providers like MTN, Glo, Airtel, and others to ensure improved service delivery to their customers amidst the recent 50 per cent telecom tariff hike. 

“Issues such as network congestion, dropped calls, inconsistent internet speeds, unusual data depletion, and poor customer service have remained prevalent concerns. It is, therefore, crucial that tariff adjustments directly translate into demonstrable and tangible service enhancements for consumers,” the commission said.

FCCPC tasked MTN, Airtel, Glo, and other network operators to allocate increased revenues responsibly, with an emphasis on infrastructure development and service delivery improvements. 

It added that clear mechanisms must be established to monitor how these funds are utilized, ensuring that consumers directly benefit from the adjustments.