Just In: FCCPC imposes $220,000,000 penalty on Meta platforms over ‘discriminatory practices’ in Nigeria
The Federal Competition and Consumer Protection Commission(FCCPC) has imposed a $220,000,000 penalty against Meta Platforms Incorporated over alleged discriminatory practices against Nigerian data and consumers.
This was disclosed on Friday in a statement signed by Dr. Adamu Abdullahi, Acting Chief Executive Officer, FCCPC.
The penalty follows a joint investigation by the Commission, and the Nigeria Data Protection Commission (NDPC) into Meta platforms’ conduct, privacy policies, the operation thereof, and practices between May 2021 and December 2023, and over this period of 38 months.
FCCPC’s investigation of Meta
According to the statement, on May 2021, the Commission had directed WhatsApp LLC and Meta Platforms, Inc. (formerly called Facebook Inc.) to defend themselves regarding its investigative report which detailed how their conduct allegedly violated relevant data laws.
Meta was said to have provided some information in response to the requests and summons under the joint investigation.
“Meta Parties by themselves, and retained counsels have also repeatedly engaged with, and met with investigators and analysts from the Commission, and the NDPC, including as recently as April 4, 2024,” the statement added.
The Commission disclosed that the totality of the investigation has now concluded that Meta platforms over a protracted period of time have engaged in conduct that constitutes continuing infringements of the FCCPA and NDPR, “particularly, but not limited to abusive, and invasive practices against data subjects/consumers in Nigeria, such as appropriating personal data or information without consent, discriminatory practices against Nigerian data subjects/consumers or disparate treatment of consumers/data subjects compared with other jurisdictions with similar regulatory frameworks, abuse of dominant market position by forcing unscrupulous, exploitative, and non-compliant privacy policies which appropriated consumer personal information without the option or opportunity to self-determine or otherwise withhold or provide consent to the gathering, use, and/or sharing of such personal data.”
FCCPC stated that being satisfied with the evidence on the record and that Meta Parties have been provided with every opportunity to articulate any position, representations, refutations, explanations or defences of their conduct and practices under law, the Commission has now entered a final Order and issued a penalty against Meta Parties including $220,000,000 fine.
The final order highlighted Meta’s alleged infringements to include, denying Nigerian data subjects the right to self-determine; unauthorized transfer and sharing of Nigerian data-subjects personal data, including cross-border storage in violation of then, and now prevailing law; discrimination and disparate treatment and abuse of Dominance.
The statement partly reads,
“The Final Order of the Commission mandates steps and actions Meta Parties must take to comply with prevailing law and cease the exploitation of Nigerian consumers and their market abuse, as well as desist from future similar or other conduct/practices that do not meet nationally applicable standards and undermine the rights of consumers.
“The Final order also imposes a monetary penalty of Two Hundred and Twenty Million U.S. Dollars only ($220,000,000.00) (at prevailing exchange rate where applicable) which penalty is in accordance with the FCCPA 2018, and the Federal Competition and Consumer Protection (Administrative Penalties) Regulations 2020 (APR).”
The Commission stated that it remains committed to its respective mandates to protect the privacy of Nigerians under the Constitution and all data protection laws and regulations, as well as to ensure that consumer rights are respected, and the markets operate in a fair and transparent manner.
The Commission in collaboration by the NDPC plays a role in ensuring compliance with the law relating to data, competition(businesses) and consumers.
The decision is coming less than seven hours after the Federal High Court sitting in Abuja struck out a N30 billion alleged illegal advertisement lawsuit instituted against Meta Platforms Incorporated (owners of Facebook, Instagram and WhatsApp platforms) and its agent AT3 Resources Limited by the Advertising Regulatory Council of Nigeria (ARCON).
Justice Peter Lifu struck out ARCON’s case on Friday, in suit no: FHC/ABJ/CS/1701/2022, following a notice of discontinuance entered by the plaintiff’s lawyer, Barrister Micheal Okorie.
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