Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has imposed a hefty fine of $220 million on Meta, the parent company of Facebook and WhatsApp.
This penalty comes as a result of alleged violations of data privacy laws in the West African nation.
Key Points of the FCCPC’s Decision
- Data Sharing Practices: The FCCPC found that Meta’s data-sharing practices on Facebook and WhatsApp platforms violated local consumer and data protection regulations.
- User Control: The commission accused Meta of denying Nigerian users control over their personal data.
- Consent Issues: Meta allegedly shared user data without obtaining proper consent.
- Market Dominance: The tech giant was found to have abused its dominant market position.
Investigation Timeline
- Initiated: May 2021
- Legal Basis: Federal Competition and Consumer Protection Act 2018 and Nigeria Data Protection Regulation 2019
- Recent Developments: Meetings between Meta representatives and investigators as recently as April 4, 2024
Specific Violations Cited:
- Unauthorised transfer and sharing of Nigerian users’ personal data
- Cross-border data storage issues
- Discriminatory practices against Nigerian users
- Tying and bundling of services
The FCCPC’s order not only imposes the monetary penalty but also mandates that Meta take steps to comply with Nigerian law and cease practices that exploit consumers or abuse market dominance.
FCCPC, in a statement signed by its Executive Chairman, Adamu Abdullahi stated:
“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.”
“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 is consistent with the current administration’s crackdown on companies that are said to be caught in violation of local laws.
Earlier this year, Cryptocurrency firm Binance was hit with a staggering $10 billion fine for illegal transactions, while seven companies were collectively fined over 400 million naira in June for data and privacy violations.
