The Federal Competition and Consumer Protection Commission (FCCPC) has taken a significant step by imposing a substantial $220 million penalty on Meta Platforms Incorporated, formerly known as Facebook Inc., for numerous violations of data and consumer protection laws in Nigeria. The landmark action, announced in a statement by Dr. Adamu Abdullahi, the Acting Chief Executive Officer of the FCCPC, followed a comprehensive investigation spanning from May 2021 to December 2023.
Joint Investigation Reveals Violations
The investigation, carried out jointly by the FCCPC and the Nigeria Data Protection Commission (NDPC), closely examined Meta’s privacy policies and operational practices over a 38-month period. This inquiry was initiated after WhatsApp LLC and Meta Platforms, Inc. were directed to respond to allegations of breaching Nigerian data laws.
Key Findings and Violations
The findings of the FCCPC’s investigation highlighted several critical areas of concern. These included unauthorized data appropriation from Nigerian users without proper consent, discriminatory practices against Nigerian consumers compared to users in other jurisdictions with similar regulatory frameworks, and abuse of market dominance through the imposition of exploitative and non-compliant privacy policies.
Final Order and Penalty
Based on the evidence gathered, the FCCPC issued a final order, compelling Meta to take specific measures to adhere to Nigerian laws, end 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 control their data usage, unauthorized cross-border data transfers, and discriminatory practices. The imposed $220 million fine serves as a substantial penalty for the company’s non-compliance.
Commitment to Consumer Protection
The FCCPC reiterated its commitment to protecting Nigerian consumers’ privacy and ensuring fair market practices, emphasizing the collaboration with the NDPC as a testament to the importance of regulatory compliance and the protection of consumer rights in the digital age.
Recent Legal Context
This recent action by the FCCPC follows a dismissal of a separate N30 billion lawsuit against Meta Platforms by the Advertising Regulatory Council of Nigeria (ARCON). Additionally, it comes in the wake of Meta being fined $1.3 billion (€1.2 billion) in May 2023 for violating European Union data protection rules and being ordered to halt the transfer of data collected from Facebook users in Europe to the United States. Furthermore, the Facebook-owned company was instructed to ensure compliance with the General Data Protection Regulation (GDPR) in its data transfers.