The Federal Government, through the Federal Competition and Consumer Protection Commission, FCCPC, has slammed a $220 million fine on Meta, part company of WhatsApp, Facebook, and Instagram, for alleged data privacy breach.
The commission, in a statement signed by Adamu Abdullahi, its acting executive chairman on Friday disclosed that it found Meta culpable of denying Nigerian data subjects the right to self-determine, unauthorized transfer and sharing of Nigerian data, including cross-border storage in violation; discrimination and disparate treatment, abuse of dominance, and tying and bundling.
The FCCPC said: “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).”
A WhatsApp spokesperson said this decision will be appealed. “We disagree with both this decision and the fine and will appeal,” the spokesperson said.
The FCCPC noted that this decision was reached after a joint investigation by it and the Nigeria Data Protection Commission, NDPC, which lasted for 38 months (May 2021 and December 2023). The investigation examined Meta’s conduct, privacy policies, and operations.
The FCCPC said it began its investigations in May 2021 based on available evidence that Meta, through its platforms, had violated provisions of the Federal Competition and Consumer Protection Act 2018 and the Nigeria Data Protection Regulation 2019, which were in force before the enactment and operationalization of the Nigeria Data Protection Act 2023.
The competition protection body noted that Meta provided some information in response to document requests and summons. It said “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 FCCPC highlighted that its investigation revealed that Meta engaged in conduct that included abusive and invasive practices against data consumers in Nigeria, such as collecting personal data or information without consent and discriminatory practices against Nigerians, among others.
It noted that Meta was provided with opportunities to defend itself during the investigation before entering a final order. The order is in respect to infringements, particularly regarding:
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“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; abuse of Dominance; and tying and bundling.”
The FCCPC added that: “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.”
However on X, Babatunde Irukera, the FCCPC’s former chairman, said: “In this matter of protecting consumers and fair market regulation, Nigeria didn’t proceed at dawn, but as a testament to Nigerian ingenuity and resilience, we have made such progress ahead of dusk! Leading continental digital markets accountability is reflective of who Nigerians are.”
Meta’s $220 million fine announcement coincides with the dismissal, by the Federal High Court sitting in Abuja on Friday, of a N30 billion alleged illegal advertisement lawsuit instituted against it and its agent AT3 Resources Limited by the Advertising Regulatory Council of Nigeria.
In 2023, the European Union fined Meta a record $1.3 billion for privacy breaches and ordered it to stop transferring users’ personal information in a decadelong case. In 2022, South Africa’s Competition Commission said it was seeking a maximum abuse of dominance fine against Meta for allegedly trying to restrict an online “chatbot” from using WhatsApp to provide public health information to citizens on behalf of the government.
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