The Federal Competition and Consumer Protection Commission (FCCPC) has imposed a hefty $220 million penalty on Meta Platforms Incorporated, citing numerous breaches of Nigerian data and consumer protection laws. This landmark action was disclosed in a statement signed by Dr. Adamu Abdullahi, the Acting Chief Executive Officer of the FCCPC, following a comprehensive investigation spanning from May 2021 to December 2023.
Joint Investigation Uncovers Violations
The investigation, conducted jointly by the FCCPC and the Nigeria Data Protection Commission (NDPC), scrutinized Meta’s privacy policies and operational practices over a 38-month period. The probe was initiated after WhatsApp LLC and Meta Platforms, Inc. (formerly Facebook Inc.) were directed to respond to allegations of violating Nigerian data laws.
During the investigation, Meta provided information and engaged with FCCPC and NDPC analysts, addressing various concerns as recently as April 2024. However, the investigation concluded that Meta’s practices were consistently infringing on the Nigerian Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).
Key Findings
The FCCPC’s findings highlighted several critical areas of concern:
- Unauthorized Data Appropriation: Meta was found to have appropriated personal data from Nigerian users without obtaining proper consent.
- Discriminatory Practices: The investigation revealed that Nigerian consumers were subjected to discriminatory treatment compared to users in other jurisdictions with similar regulatory frameworks.
- Abuse of Market Dominance: Meta allegedly forced exploitative and non-compliant privacy policies on Nigerian consumers, denying them the opportunity to control their personal data.
Final Order and Penalty
Based on the evidence gathered, the FCCPC issued a final order and imposed a $220 million fine on Meta Platforms. The order mandates Meta to take specific steps to comply with Nigerian laws, cease exploitative practices, and ensure future conduct aligns with national standards.
The FCCPC’s statement emphasized that Meta’s violations included denying Nigerian users the right to self-determine their data usage, unauthorized cross-border data transfers, and discriminatory practices.
Commitment to Consumer Protection
The FCCPC reaffirmed its commitment to protecting Nigerian consumers’ privacy and ensuring fair market practices. The collaboration with the NDPC underscores the importance of regulatory compliance and the protection of consumer rights in the digital age.
Recent Legal Context
This decision comes shortly after the Federal High Court in Abuja struck out a separate N30 billion lawsuit against Meta Platforms. The lawsuit, initiated by the Advertising Regulatory Council of Nigeria (ARCON), was dismissed following a notice of discontinuance by ARCON’s legal representative.
In May 2023, Meta was fined $1.3 billion (€1.2 billion) for violating European Union data protection rules and ordered to stop transferring data collected from Facebook users in Europe to the United States. Furthermore, the Facebook-owned company was also ordered to bring its data transfers into compliance with the General Data Protection Regulation (GDPR).
