FCCPC Imposes $220m fine on Meta for Data and Consumer Rights Violations in Nigeria

The Federal Competition and Consumer Protection Commission (FCCPC) has imposed a significant $220 million fine on Meta Platforms Incorporated for multiple violations of Nigerian data and consumer protection laws. This unprecedented action was announced by Dr. Adamu Abdullahi, Acting Chief Executive Officer of the FCCPC, following a thorough investigation from May 2021 to December 2023.

The investigation, a joint effort between the FCCPC and the Nigeria Data Protection Commission (NDPC), meticulously examined Meta’s privacy policies and operational practices over 38 months. The inquiry was initiated after directives were issued to WhatsApp LLC and Meta Platforms, Inc. (formerly Facebook Inc.) to address allegations of non-compliance with Nigerian data protection laws.

Throughout the investigation, Meta engaged with FCCPC and NDPC analysts, providing information and addressing various concerns up until April 2024. Despite these engagements, the investigation ultimately found that Meta's practices consistently violated the Nigerian Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).

Key Findings

• Unauthorised Data Appropriation: Meta was found to have collected personal data from Nigerian users without obtaining proper consent.
• Discriminatory Practices: The investigation revealed that Nigerian consumers were treated unfairly compared to users in other jurisdictions with similar regulatory frameworks.
• Abuse of Market Dominance: Meta allegedly imposed exploitative and non-compliant privacy policies on Nigerian consumers, restricting their ability to control their personal data.

Final Order and Penalty

Based on the evidence gathered, the FCCPC has issued a final order and imposed a $220 million fine on Meta Platforms. The order requires Meta to:

• Comply with Nigerian laws
• Cease exploitative practices
• Ensure future conduct aligns with national standards

The FCCPC emphasised that Meta's violations included denying Nigerian users the right to control their data usage, conducting unauthorised cross-border data transfers, and engaging in discriminatory practices.

The FCCPC reaffirmed its commitment to protecting Nigerian consumers’ privacy and ensuring fair market practices. The collaboration with the NDPC underscores the importance of regulatory compliance and the protection of consumer rights in the digital age.

This decision comes shortly after the Federal High Court in Abuja struck out a separate N30 billion lawsuit against Meta Platforms. The lawsuit, initiated by the Advertising Regulatory Council of Nigeria (ARCON), was dismissed following a notice of discontinuance by ARCON’s legal representative.

In May 2023, Meta was fined $1.3 billion (€1.2 billion) for violating European Union data protection rules and ordered to stop transferring data collected from Facebook users in Europe to the United States. Furthermore, the Facebook-owned company was also ordered to bring its data transfers into compliance with the General Data Protection Regulation (GDPR).