Introduction
A recent ruling of the Federal High Court, Lagos in the case of Emeka Nnubia v. Honourable Minister of Industry, Trade and Investment, FCCPC and MTN Communications Nigeria Plc (FHC/L/CS/1009/2024), has reaffirmed the Federal Competition and Consumer Protection Commission’s (FCCPC) oversight authority over competition and consumer protection across all sectors.
Case Background
The dispute arose when FCCPC issued a Notice of Possible Investigation to MTN on May 17, 2024, citing concerns over potential anti-competitive practices. MTN acknowledged receipt and requested deadline extensions, which FCCPC granted twice. However, just three days before the final deadline, an MTN shareholder, Emeka Nnubia, filed a lawsuit, challenging FCCPC’s authority and seeking to halt the investigation. The lawsuit argued that:
- FCCPC lacked jurisdiction over telecommunications, asserting that only the Nigerian Communications Commission (NCC) had regulatory oversight.
- FCCPC’s investigation violated data protection laws, alleging that it sought access to personal data.
- FCCPC exceeded its statutory powers, making its regulatory actions unlawful and requiring them to be nullified.
The Federal High Court dismissed these arguments and ruled in FCCPC’s favour, affirming that the Commission acted within its statutory mandate under the Federal Competition and Consumer Protection Act, 2018 (FCCPA) without violating any data protection laws.
Key Takeaways from the Ruling
- FCCPC’s Regulatory Authority Upheld – The court reaffirmed FCCPC’s jurisdiction over competition and consumer protection across all sectors, dismissing attempts to limit its authority.
- Supremacy of FCCPA in Competition Matters – The court ruled that Section 104 of the FCCPA prevails over any other laws in matters relating to competition and consumer protection.
- Clarification on Inter-Agency Collaboration –Section 105 of the FCCPA mandates FCCPC as the primary competition authority while allowing collaboration with sector-specific regulators. However, the court clarified that FCCPC does not require an agreement with sector regulators before exercising its statutory authority.
- Concurrent Regulation with NCC – While NCC regulates technical telecom operations, FCCPC retains authority over competition and consumer protection issues, ensuring balanced oversight.
- Lawful Exercise of Investigative Powers – FCCPC lawfully exercised its authority to summon entities and request documents as part of its investigation.
- Regulatory Collaboration Emphasized – The ruling highlighted the need for cooperation between FCCPC and sector regulators to ensure effective competition enforcement.
- Data Protection Compliance – The court confirmed that FCCPC’s actions did not violate data protection laws, as no personal data was requested.
Implications for Businesses and Industry Players
- Increased Regulatory Scrutiny – Businesses, particularly in regulated sectors such as telecommunications, banking, fintech, and energy, must recognize FCCPC’s enforcement role and ensure compliance with competition and consumer protection laws.
- Proactive Engagement with Regulators – Businesses should anticipate increased collaboration between FCCPC and sector-specific regulators. Engaging early with regulators and maintaining compliance are critical to avoiding penalties and legal challenges.
- Legal and Contractual Preparedness – Businesses must review contracts, agreements, and internal policies to ensure they align with competition laws and mitigate regulatory risks.
- Fair Market Practices and Competitive Oversight – The ruling prevents businesses from attempting to limit regulatory oversight, ensuring a level playing field and consistent enforcement of competition rules across industries.
Navigating Regulatory Risks with SimmonsCooper Partners
With increasing regulatory enforcement and litigation risks, businesses must be prepared to respond effectively to investigations, regulatory disputes, and enforcement actions. For more insights into this ruling, legal representation in regulatory disputes or strategic defense against enforcement actions, contact us at info@scp-law.com or visit www.scp-law.com.
