Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has imposed a $220 million fine on Meta Platforms, the parent company of Facebook and Instagram, for data privacy violations. This decision mandates that Meta comply with Nigerian laws, cease practices exploiting Nigerian consumers, and refrain from further conduct undermining consumer rights. The FCCPC’s order highlights several infringements, including the unauthorized transfer and sharing of personal data, discriminatory conduct towards Nigerian consumers, abuse of its dominant market position, and coercive bundling of services.
The fine results from a 38-month joint investigation by the FCCPC and the Nigeria Data Protection Commission, covering practices by Meta and WhatsApp LLC between May 2021 and December 2023. The investigation revealed violations of the Federal Competition and Consumer Protection Act 2018 (FCCPA) and the Nigeria Data Protection Regulation 2019 (NDPR), enforced before the Nigeria Data Protection Act 2023.
One of the significant issues scrutinized was WhatsApp’s privacy policy update on May 15, 2021. The policy was found to force compliance from Nigerian users without ensuring voluntary consent aligned with the fairness standards set by the NDPR and FCCPA. The investigation examined whether these policies and related business practices were excessive or exploitative, underlining that Nigerian users were being provided with lower data protection compared to European counterparts.
Throughout the investigation, Meta responded to document requests and engaged in meetings with FCCPC officials, including the most recent in April 2024. Nevertheless, the FCCPC found that Meta failed to employ a Data Protection Compliance Organisation and did not submit required audit reports for two consecutive years.
The enforcement of the Nigeria Data Protection Act 2023 signifies a more stringent approach to safeguarding personal data in Nigeria. This act, supported by the Nigeria Data Protection Regulation, empowers the newly established Nigeria Data Protection Commission to ensure fair, transparent data processing and uphold individuals’ rights in light of recent infractions by global tech giants.
Nigeria, with its 103 million internet users and 36.75 million social media users, has intensified its focus on data protection as a necessary step towards protecting consumer rights in the digital age. The full details of the case and the regulatory actions taken can be found on the JURIST news website.