FCCPC Fines Meta Platforms $220 for Data Privacy Breach

The Federal Competition and Consumer Protection Commission (FCCPC) has fined Meta Platforms Incorporated $220,000,000 for purported discriminatory actions against Nigerian data and consumers.

The announcement was made on Friday in a release signed by the acting CEO of FCCPC, Dr. Adamu Abdullahi.

The penalty comes after a collaborative inquiry by the Commission and the Nigeria Data Protection Commission (NDPC) into Meta platforms’ behavior, privacy policies, operations, and practices from May 2021 to December 2023, spanning 38 months.

As per the official statement, in May 2021, the Commission had instructed WhatsApp LLC and Meta Platforms, Inc. (formerly known as Facebook Inc.) to provide a defense in response to its investigative report, which outlined alleged violations of pertinent data regulations by their actions.

In response to the joint investigation’s requests and summons, Meta reportedly provided some data.

“Meta Parties by themselves, and retained counsels have also repeatedly engaged with, and met with investigators and analysts from the Commission, and the NDPC, including as recently as April 4, 2024,” the statement added.

The Commission has concluded that Meta Platforms has engaged in sustained violations of the FCCPA and NDPR over an extended period, “particularly, but not limited to abusive, and invasive practices against data subjects/consumers in Nigeria, such as appropriating personal data or information without consent, discriminatory practices against Nigerian data subjects/consumers or disparate treatment of consumers/data subjects compared with other jurisdictions with similar regulatory frameworks, abuse of dominant market position by forcing unscrupulous, exploitative, and non-compliant privacy policies which appropriated consumer personal information without the option or opportunity to self-determine or otherwise withhold or provide consent to the gathering, use, and/or sharing of such personal data.”

After reviewing the evidence on the record and ensuring that Meta Parties have had ample opportunity to present their positions, representations, refutations, explanations, or defenses in accordance with the law, the FCCPC has issued a final Order imposing a penalty of $220,000,000 against Meta Parties.

The final order specifically outlined Meta's alleged violations, which include denying Nigerian data subjects the right to self-determination, unauthorized transfer and sharing of Nigerian data subjects' personal data, including cross-border storage in violation of existing laws, as well as discrimination, disparate treatment, and abuse of dominance.

“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.

“The Final order also imposes a monetary penalty of $220 million (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 Commission affirmed its dedication to upholding the privacy rights of Nigerians as outlined in the Constitution and data protection regulations, while also ensuring consumer rights are upheld and markets function transparently and fairly.

The Commission, in partnership with the NDPC, works towards enforcing laws pertaining to data, competition, and consumer protection.

The decision is being made less than seven hours after the Federal High Court in Abuja dismissed a N30 billion alleged illegal advertisement lawsuit filed against Meta Platforms Incorporated (owners of Facebook, Instagram, and WhatsApp platforms) and its agent AT3 Resources Limited by the Advertising Regulatory Council of Nigeria (ARCON).

Justice Peter Lifu struck out ARCON’s case on Friday, in suit no: FHC/ABJ/CS/1701/2022, following a notice of discontinuance entered by the plaintiff’s lawyer, Barrister Micheal Okorie.