FCCPC Imposes $220 Million Fine on Meta Platforms

Financial Markets

The Federal Competition and Consumer Protection Commission (FCCPC) has levied a $220 million penalty against Meta Platforms Incorporated over alleged discriminatory practices against Nigerian consumers and their data.

The announcement was made recently in a statement signed by Dr. Adamu Abdullahi, Acting Chief Executive Officer of the FCCPC. The penalty follows a joint investigation by the FCCPC and the Nigeria Data Protection Commission (NDPC) into Meta’s conduct, privacy policies, and practices between May 2021 and December 2023.

The investigation revealed that Meta, formerly known as Facebook Inc., and its subsidiary WhatsApp LLC, engaged in practices that allegedly violated Nigerian data laws.

In May 2021, the Commission directed Meta and WhatsApp to respond to its investigative report, which detailed these alleged violations.

According to the statement, Meta provided information in response to the investigation and engaged with FCCPC and NDPC investigators and analysts multiple times, including as recently as April 2024.

The investigation concluded that Meta had engaged in abusive and invasive practices against Nigerian consumers over a protracted period.

These practices included appropriating personal data without consent, discriminatory treatment of Nigerian consumers compared to other jurisdictions, and abusing its dominant market position by imposing exploitative privacy policies.

Satisfied with the evidence, the FCCPC issued a final order imposing a $220 million fine on Meta.

The order highlighted Meta’s alleged infringements, including denying Nigerian consumers the right to self-determine, unauthorized data transfers, discriminatory practices, and abuse of dominance.

The final order mandates that Meta take steps to comply with Nigerian laws, cease exploitative practices, and ensure that future conduct meets national standards and respects consumer rights.

The monetary penalty is in accordance with the FCCPA 2018 and the Federal Competition and Consumer Protection (Administrative Penalties) Regulations 2020.

The decision by the FCCPC came just hours after the Federal High Court in Abuja struck out a N30 billion lawsuit against Meta and its agent AT3 Resources Limited.

The lawsuit, filed by the Advertising Regulatory Council of Nigeria (ARCON), alleged illegal advertising practices. Justice Peter Lifu struck out the case following a notice of discontinuance from ARCON’s lawyer.