FG fines Meta $220 million for violating consumer, data laws

Federal Competition and Consumer Protection Commission has imposed a $220m fine on Meta platforms for violating data privacy laws.

FCCPC, in a statement on Friday, said that Meta’s data-sharing practices on its Facebook and WhatsApp platforms breached local consumer and data protection regulations.

The statement signed by its acting Executive Chairman, Adamu Abdullahi, said that Meta had denied Nigerian users control over their data, shared data without consent, and abused its market dominance.

It 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.”

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The FCCPC announced that it initiated its investigation in May 2021, based on evidence suggesting that Meta, through its platforms, had breached the provisions of the Federal Competition and Consumer Protection Act 2018 and the Nigeria Data Protection Regulation 2019, which were in effect prior to the enactment and implementation of the Nigeria Data Protection Act 2023.

The competition protection body noted that Meta responded to document requests and summons by providing some information.

It stated, “Meta representatives and their retained legal counsel have consistently engaged with and met investigators and analysts from the commission and the NDPC, including as recently as April 4, 2024.”

The FCCPC highlighted that its investigation uncovered evidence of Meta engaging in practices that were abusive and invasive towards data consumers in Nigeria. This included collecting personal data without consent and implementing discriminatory practices against Nigerians, among other issues.

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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:

FCCPC stated, “Denying Nigerian data subjects the right to self-determine; unauthorised 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 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.”

This decision follows a recent development where the Federal High Court in Abuja dismissed a N30bn lawsuit filed by the Advertising Regulatory Council of Nigeria against Meta Platforms Incorporated (the parent company of Facebook, Instagram, and WhatsApp) and its agent AT3 Resources Limited.