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On April 25, Nigeria's Competition and Consumer Protection Tribunal directed Meta Platforms Inc. and WhatsApp to pay a total of $255 million in fines to the Federal Competition and Consumer Protection Commission (FCCPC) for engaging in discriminatory practices. The amount includes a $220 million penalty and an additional $35,000 to cover the costs of the FCCPC's investigation.
The tribunal upheld the FCCPC's ruling regarding the penalty for data discrimination issues in Nigeria and dismissed an appeal from WhatsApp and Meta aimed at overturning this financial sanction. The decision was rendered by a three-member panel led by Thomas Okosun on Friday. The legal representatives of both parties, including Professor Gbolahan Elias (SAN) for WhatsApp and Meta and Babatunde Irukera (SAN) for the FCCPC, presented their final arguments on January 28, 2025.
The companies had previously claimed that the FCCPC's $220 million penalty was unjustified, citing unclear directives, unreasonable data-sharing demands, and alleged procedural mistakes. In their appeal, WhatsApp and Meta described the FCCPC's penalties as vague and claimed the compliance requirements were technically infeasible within the designated timeframe. In response, the FCCPC argued that the penalty was necessary to address the companies' alleged discriminatory actions rather than merely serving as a punitive measure. The Commission also raised alarm over Meta's purportedly exploitative practices involving unauthorized access and misuse of private data. During the proceedings, Elias urged the tribunal to disregard foreign legal precedents he deemed inapplicable, asserting that users can choose from alternatives like TikTok and Google Meet, indicating there was no abuse of dominance.
Conversely, Irukera urged the tribunal to uphold the FCCPC's decision, emphasizing that while foreign laws are not binding, they can provide useful context. The tribunal stated that, despite contests from WhatsApp and Meta regarding foreign legal references, the FCCPC's reliance on such jurisprudence was acceptable. While part of the evidence from the FCCPC was restricted, some internal documents were accepted for the case.
The tribunal concluded that Facebook and WhatsApp had failed to present adequate evidence to counter the FCCPC's findings and supported the Commission's assertion that the companies infringed upon Nigeria's data protection laws. It further ruled that Meta had acted outside legal boundaries by transferring user data to third parties. Key directives from the tribunal included: - Immediate restoration of Nigerian users' rights regarding data sharing. - Submission of a compliance letter by July 1, 2025. - An update to their application allowing users to manage their data preferences. - Provision of a proposed data policy within 10 days for review by the FCCPC and NDPC. - A stop to the sharing of Nigerian users' information with Facebook and outside parties.
- Adherence to the data-sharing policy in place in 2016. Additionally, Meta was ordered to pay the FCCPC a reimbursement of $35,000 and the $220 million fine within 60 days from April 30, 2025. In response to the FCCPC's rulings, WhatsApp commented on its past communication with users regarding business interactions, noting the process has become widely adopted despite initial confusion. Fines of this nature are not unusual; for example, the European Data Protection Board previously imposed a significant €1.2 billion penalty on Meta for privacy regulation violations.
Over recent years, major tech companies, including Amazon and Google, have faced large fines under the EU's General Data Protection Regulation (GDPR). The legality of the FCCPC's fines against Meta Platforms Inc. is now under tribunal review.
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