Tribunal Directs Meta and WhatsApp to Pay: On Friday, Nigeria’s Competition and Consumer Protection Tribunal mandated that WhatsApp and Meta Platforms Incorporated pay a total of $220 million in penalties and an additional $35,000 to the Federal Competition and Consumer Protection Commission (FCCPC) within 60 days due to data discrimination issues in Nigeria.
The tribunal upheld the FCCPC’s imposition of the $220 million penalty on WhatsApp and Meta Platforms Incorporated and required the payment of $35,000 as reimbursement for the Commission’s investigation into the social media entity.
Additionally, the tribunal rejected the appeal from WhatsApp and Meta Platforms Incorporated contesting the $220 million penalty, which was assessed for purported discriminatory practices in Nigeria.
The verdict was delivered by a three-member panel led by Thomas Okosun.
Legal representatives for WhatsApp and Meta, headed by Professor Gbolahan Elias (SAN), presented their case alongside the FCCPC’s legal counsel, Babatunde Irukera (SAN), a former Executive Vice Chairman of the Commission, during the final arguments held on January 28, 2025.
WhatsApp and Meta Platforms Incorporated had sought to overturn the FCCPC’s $220 million penalty, citing 22 reasons, including claims of unclear directives, unjustifiable data-sharing mandates, and procedural mistakes.
The appellants argued that the FCCPC’s requirements were ambiguous, technically unfeasible within the given timeframe, and lacked support from Nigerian law.
This penalty by the FCCPC followed an inquiry into alleged breaches of data protection and consumer rights by Meta and WhatsApp.
The Commission highlighted concerns regarding Meta’s purportedly abusive practices, which were said to adversely affect data subjects and consumers in Nigeria.
Details from Legal Submissions
In their appeal, the appellants contended that the FCCPC failed to provide them a fair hearing by imposing a substantial penalty without allowing them a chance to comprehend the calculation of the fine or to respond to the proposed amount.
They maintained that, contrary to the FCCPC’s compliance order, establishing a consent mechanism for each data point processed by Nigerian users would be impractical and excessively costly.
However, the FCCPC countered, stating that the $220 million fine was intended to rectify the company’s alleged discriminatory practices rather than serve as a punitive measure.
The Commission emphasized its findings, indicating that Meta engaged in exploitative actions that infringed on constitutional protections by permitting unauthorized access to and misuse of private data.
Elias implored the tribunal not to depend on foreign laws that do not apply in Nigeria, asserting that there is no dominance abuse given that users have alternatives such as TikTok and Google Meet.
Conversely, Irukera urged the tribunal to support the Commission’s directives and fully reject the appeal, arguing that while foreign law is not obligatory, it can be influential in comparable situations.
The FCCPC also requested the tribunal’s permission to submit the “entire record within its custody” to facilitate a transparent resolution of the matter.
Tribunal’s Findings
In its ruling, the tribunal affirmed that the FCCPC’s reliance on foreign decisions was both appropriate and legally persuasive.
The tribunal partially blocked the submission of the FCCPC’s entire record while permitting the inclusion of an internal memo, an email from Udo Udoma Law Firm, and an internal memo dated May 7, 2024, as supplementary evidence.
It determined that the FCCPC’s final and supplementary orders were validly executed in accordance with the FCCPC Act and the Evidence Act.
Furthermore, the tribunal ruled that WhatsApp and Meta did not present substantial evidence to challenge the FCCPC’s findings.
Addressing WhatsApp’s claims regarding fair hearing, Okosun concluded that the issue favored the FCCPC, as the Commission had afforded the social media companies a fair hearing.
“The appellants were afforded ample opportunity to present their case,” stated Okosun.
The tribunal asserted that the FCCPC did not exceed its authority when issuing orders related to data protection and acted within its legal mandate to address market dominance.
The tribunal concurred with the FCCPC’s position that Meta and WhatsApp improperly transferred consumer data to third parties, violating Nigerian data protection regulations. It also agreed that WhatsApp and Meta’s privacy policies contravened Nigerian laws.
“The tribunal finds no error in the FCCPC’s overall orders,” it concluded.
In light of this, the tribunal ruled that the administrative penalties imposed by the FCCPC were legally justified against Meta and WhatsApp.
The tribunal dismissed the appellants’ appeal against the FCCPC.
Subsequent Orders
The tribunal issued the following directives:
1. Meta must immediately restore the rights of Nigerian users regarding data sharing preferences.
2. Meta is required to submit a compliance letter by July 1, 2025.
3. Meta must revise its application to allow Nigerians to fully express their rights concerning each data point.
4. Within 10 days, Meta must provide its proposed policy to the FCCPC and NDPC, which must also be made public.
5. Meta shall cease sharing Nigerian users’ information with Facebook and other third parties immediately.
6. The company is to revert to its 2016 data-sharing policy.
7. Meta must stop linking WhatsApp data to Facebook and other third parties without obtaining explicit consent from Nigerian users and must demonstrate compliance.
8. Meta is required to reimburse the FCCPC $35,000 for the investigation.
9. The $220 million fine must be paid no later than 60 days from April 30, 2025.
In response to the FCCPC’s orders, WhatsApp remarked: “In 2021, we globally informed users about how interactions with businesses would function. While there was initial confusion, it has proven to be quite popular.”
Such fines are not unusual; for instance, the European Data Protection Board imposed a record €1.2 billion fine on Meta for failing to comply with EU privacy regulations.
In recent years, major tech companies like Amazon, Meta, and Google have faced substantial fines under the EU’s General Data Protection Regulation (GDPR).
The legality of the FCCPC’s penalties imposed on Meta Platforms Incorporated is now subject to the tribunal’s review.
