Tribunal Upholds FCCPC’s $220m Fine Against Facebook, WhatsApp Over Sharp Practices Against Nigerians
The Competition and Consumer Protection Tribunal today affirmed the Federal Competition and Consumer Protection Commission’s (FCCPC) authority, upholding nearly all aspects of its Final Order against Meta Platforms Incorporated and WhatsApp LLC.
In its ruling today, the Tribunal affirmed that the FCCPC acted within its legal framework, discharging its mandate and adhering to the powers granted by the 1999 Constitution (as amended). The Tribunal also determined that Meta and WhatsApp’s actions were correctly identified as violations of consumer protection laws, upholding the FCCPC’s findings in the matter.
The Tribunal’s judgment comes after a lengthy investigation, which began in 2020, and a subsequent appeal filed by Meta and WhatsApp. The FCCPC had initially issued a Final Order on July 19, 2024, imposing a hefty $220 million administrative penalty on the companies. The penalty was in response to the discovery that Meta and WhatsApp had engaged in discriminatory and exploitative practices against Nigerian consumers.
The three-member panel of the Tribunal, led by Honorable Thomas Okosun, also awarded an additional $35,000 to the FCCPC as the cost of its investigation into the companies. Meta and WhatsApp’s legal team, led by Professor Gbolahan Elias (SAN), challenged the findings, while the FCCPC’s legal team, led by Mr. Babatunde Irukera, argued in defense of the Commission’s authority and findings.
The case stems from a joint investigation conducted by the FCCPC and the Nigeria Data Protection Commission (NDPC) over a span of 38 months. The investigation scrutinized Meta and WhatsApp’s privacy practices, consumer data policies, and overall conduct in Nigeria. Dissatisfied with the FCCPC’s findings and penalties, Meta and WhatsApp appealed the decision to the Tribunal.
While ruling on Meta’s appeal, the Tribunal upheld the FCCPC’s investigative procedures, finding no faults in the Commission’s actions. It dismissed multiple objections raised by Meta and WhatsApp regarding the legal competence of the Commission and its findings.
One significant issue in the appeal was a claim that Meta and WhatsApp had been denied fair hearing during the investigation. The Tribunal found this allegation unfounded, ruling that the FCCPC had given the appellants ample opportunity to respond, and no constitutional due process was violated.
Another major issue involved whether the FCCPC had the authority to regulate data protection and privacy matters. The Tribunal ruled in the FCCPC’s favor, confirming that the Commission acted within its statutory powers under Section 104 of the Federal Competition and Consumer Protection Act (FCCPA), which grants the Commission the authority to regulate business practices even in sectors dealing with data protection.
On the issue concerning Meta’s privacy policies, the Tribunal again sided with the FCCPC, confirming that the privacy policy in question violated Nigerian law. However, while affirming the majority of the FCCPC’s Final Order, the Tribunal did set aside Order 7, which had been part of the original penalty, citing insufficient legal basis for its enforcement.
FCCPC Executive Vice Chairman/CEO, Mr. Tunji Bello, expressed his satisfaction with the ruling, thanking the Commission’s legal team for their exemplary work in presenting a solid case. He reiterated the FCCPC’s commitment to ensuring consumer rights and fair business practices in Nigeria, aligning the Commission’s actions with the Renewed Hope Agenda of President Bola Ahmed Tinubu.
