Tribunal upholds FCCPC’s $220m fine against Meta

The Competition and Consumer Protection Tribunal has ordered WhatsApp and Meta Platforms Incorporated to pay a $220m penalty and $35,000 to the Federal Competition and Consumer Protection Commission within 60 days over data discrimination practices in Nigeria.

It upheld the $220m penalty imposed by FCCPC on WhatsApp and Meta Platforms Incorporated, as well as $35,000 as reimbursement for the commission’s investigation against the social media giant.

A statement by the agency’s Director for Corporate Affairs, Ondaje Ijagwu, disclosed the verdict following a ruling delivered by a three-member panel led by Thomas Okosun on Friday in Abuja.

The director said the ruling affirmed the commission’s authority and actions in nearly all the contested issues.

The statement read, “The Competition and Consumer Protection Tribunal today delivered its judgment in the appeal filed by Meta Platforms Incorporated (Facebook) and WhatsApp LLC against the Federal Competition and Consumer Protection Commission, affirming the commission’s authority and actions in nearly all the contested issues.

“The tribunal specifically determined that the commission complied with prevailing laws, discharged its mandate, and exercised its powers within the confines of the 1999 Constitution (as amended).

“It ruled that the multiple actions by WhatsApp and Meta, for which the commission made findings of violations, were correctly identified, and that the commission did not err in making those findings.”

On July 19, 2024, FCCPC imposed a fine of $220m on Meta, the parent company of WhatsApp, Facebook, and Instagram, for multiple data privacy violations.

However, Meta said it would appeal the fine, challenging both the legal basis and the findings of the commission.

The case stemmed from a 38-month joint investigation by the FCCPC and the Nigeria Data Protection Commission into the privacy practices and consumer data policies of WhatsApp and Meta. The investigation started in 2020.

In addition to upholding the major aspects of the FCCPC’s Final Order, the Tribunal ruled that the FCCPC acted within its constitutional and statutory powers in investigating and sanctioning the companies for alleged anti-competitive and exploitative practices.

WhatsApp and Meta’s legal team was led by Professor Gbolahan Elias (SAN) while the FCCPC’s legal team was led by Mr Babatunde Irukera. Both teams had made their final arguments on behalf of their respective clients on January 28, 2025.

The statement explained, “While ruling on Meta’s appeal, the tribunal also validated the commission’s investigative procedures and processes.

“The tribunal resolved Issues 1 to 7 largely in favour of the FCCPC, dismissing the appellants’ objections to the commission’s findings, orders, and legal competence.

“One of the central issues (Issue 3), which alleged a breach of fair hearing, was decided in favour of the commission, with the tribunal affirming that the FCCPC fully discharged its quasi-judicial responsibilities by affording the appellants ample opportunity to respond. The tribunal found no violation of constitutional due process.

“On Issue 4, which questioned the commission’s powers in matters of data protection and privacy, the Tribunal held that the FCCPC acted within its statutory mandate, reaffirming its authority under Section 104 of the FCCPA to regulate competition and consumer protection even in regulated industries.

“On Issue 5, which challenged the commission’s findings regarding Meta’s privacy policies, the tribunal also resolved in the FCCPC’s favour. The Tribunal found no error in the Commission’s conclusions and held that the privacy policy in question did, in fact, offend Nigerian law.

“While Issue 7 was largely resolved in favour of the commission, the Tribunal set aside Order 7 of the Commission’s Final Order, stating that it lacked a sufficient legal basis.

Commenting on the landmark judgement, FCCPC Executive Vice Chairman/Chief Executive Officer, Mr. Tunji Bello, thanked the commission’s legal team for their exceptional diligence and forensic skills in assembling evidence and marshalling their argument.

He restated FCCPC’ unwavering commitment to not only championing the rights of Nigerian consumers but also ensuring fair business practices in the country in accordance with FCCPA (2018) and consistent with the Renewed Hope Agenda of President Bola Ahmed Tinubu.

PUNCH