Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, is facing a substantial $220 million fine from the Federal Government. This penalty is due to unauthorized data use without user consent, discriminatory practices against Nigerian users, and abusive conduct in its dominant market position.
The Federal Competition and Consumer Protection Commission (FCCPC) and the Nigeria Data Protection Commission (NDPC) conducted a thorough investigation into Meta’s practices. The 38-month-long investigation uncovered multiple violations of Nigerian laws, focusing on data privacy and market behavior.
Between May 2021 and December 2023, the FCCPC and NDPC scrutinized Meta’s privacy policies and practices. They found extensive breaches of the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR). Key violations included unauthorized appropriation of personal data, discrimination against Nigerian users, and abuse of Meta’s market dominance.
Meta was found guilty of invasive practices against Nigerian data subjects. This included unauthorized cross-border data transfers and forcing users to accept exploitative privacy policies. Despite having numerous opportunities to defend itself, Meta’s defenses were insufficient in the eyes of the regulatory bodies.
The FCCPC’s final order demands several corrective actions from Meta to comply with Nigerian laws. These include ensuring Nigerian users’ right to data self-determination, stopping unauthorized data transfers, and ending discriminatory practices. Moreover, the order imposes a $220 million penalty on Meta, highlighting the severity of the violations.
The FCCPC stated, “Given the significant evidence on record and that Meta was given every opportunity to present their case, the Commission has issued a final order and a penalty against Meta. The order details the specific conduct of Meta, the infringements, and the required compliance actions.”
The violations were extensive. Meta denied Nigerian users the right to self-determine their data. It also transferred and stored personal data across borders without authorization, discriminated against Nigerian users, and abused its market dominance. The final order requires Meta to comply with prevailing laws and cease exploiting Nigerian consumers and their market. It also mandates Meta to avoid any future conduct that violates consumer rights and fails to meet national standards.
In line with the FCCPA 2018 and the Federal Competition and Consumer Protection (Administrative Penalties) Regulations 2020, the $220 million penalty was imposed to emphasize the government’s commitment to protecting consumer rights and data privacy. This decision sets a significant precedent for multinational companies operating in Nigeria.
So far, Meta has not released a statement in response to the fine or the final order. The regulatory bodies emphasized that the penalty demonstrates their dedication to upholding consumer rights and data privacy.
