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Tuesday, November 5, 2024

Nigerian Gov’t Fines Meta $220 Million Over Consumer Protection Violations

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ABUJA, Nigeria – The Federal Competition and Consumer Protection Commission, FCCPC, has imposed a $220 million fine on Meta, the parent company of WhatsApp, Facebook, and Instagram, for violating consumer and data privacy laws in Nigeria.

The penalty was announced in a statement by Adamu Abdullahi, the acting chief executive officer of the FCCPC, on Friday, July 19, 2024.

The statement clarified that the sanction is in accordance with the Federal Competition and Consumer Protection Act (FCCPA) 2018 and the Federal Competition and Consumer Protection (Administrative Penalties) Regulations 2020 (APR).

The FCCPC issued an Order and Notice to Show Cause (ONSC) to WhatsApp LLC and Meta Platforms, Inc. after discovering probable cause for violations.

The statement noted that Meta Parties were required to justify why the Commission should not finalize and enforce its orders based on findings from the FCCPA and the Nigeria Data Protection Regulation (NDPR), which was in effect before the Nigeria Data Protection Act (NDPA) 2023 was enacted.

Over a 38-month period, the FCCPC, in collaboration with the Nigeria Data Protection Commission (NDPC), conducted a thorough investigation into Meta’s data practices.

Despite Meta’s partial compliance with information requests and ongoing discussions with investigators, the investigation concluded that Meta engaged in numerous and continuous violations.

The violations included unauthorized appropriation of personal data, discriminatory practices against Nigerian consumers, and abuse of market dominance through exploitative privacy policies.

The Final Order issued by the Commission mandates Meta to take specific actions to comply with national laws, cease exploitative practices, and prevent future violations.

It also imposes a $220 million fine, emphasising the FCCPC’s commitment to protecting Nigerian consumers’ privacy and ensuring fair market practices.

“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 statement read.

The Commission reiterated its dedication to protecting Nigerians’ privacy under the Constitution and all data protection laws and regulations, as well as ensuring that consumer rights are respected and markets operate in a fair and transparent manner.

“The Commission 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 statement added.

The FCCPC appreciated the collaboration with the NDPC, highlighting that the joint investigation demonstrated a mutual desire to ensure compliance with the law and that malfeasance leads to appropriate accountability.

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