Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has been slapped with a substantial $220 million fine by the Federal Government of Nigeria. The fine comes after a thorough investigation revealed unauthorized appropriation of personal data, discriminatory practices against Nigerian users, and abuse of Meta’s dominant market position.
The Federal Competition and Consumer Protection Commission (FCCPC) and the Nigeria Data Protection Commission (NDPC) conducted a joint investigation over 38 months, from May 2021 to December 2023. This comprehensive investigation scrutinized Meta’s privacy policies and practices, uncovering multiple violations of the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).
The final report stated that Meta engaged in invasive practices against Nigerian data subjects, such as transferring personal data across borders without authorization and coercing users to accept exploitative privacy policies. Despite being given numerous opportunities to defend its practices, Meta's explanations were found insufficient by the regulatory bodies.
Meta was found to have appropriated personal data without obtaining the necessary consent from users. This practice contravenes the NDPR, which mandates explicit consent from users before any data collection. The company was accused of discriminatory treatment of Nigerian users, creating an uneven playing field that favored other users over Nigerians. This included differential pricing and service availability.
The FCCPC’s final order mandates several corrective actions for Meta to align with Nigerian laws. The group emphasized the importance of these actions to protect consumer rights and data privacy in Nigeria. In a detailed statement, the FCCPC outlined the nature of Meta’s violations and the rationale behind the penalties. The commission stated, “Being satisfied with the significant evidence on record, and that Meta Parties have been provided with every opportunity to articulate any position, representations, refutations, explanations, or defenses of their conduct and practices under law, the Commission has now entered a Final Order and issued a penalty against Meta Parties."
The statement continued, “The Final Order more elaborately describes the specific conduct or practices of the Meta Parties, the relationship between Meta Parties concerning the infringements, particularly about denying Nigerian data subjects the right to self-determine; unauthorized transfer and sharing of Nigerian data-subjects personal data, including cross-border storage in violation of prevailing law; discrimination and disparate treatment; dominance; abuse of dominance, and tying and bundling."
The Nigerian government has welcomed the ruling as a necessary step to ensure compliance with national laws and protect its citizens. The fine and corrective measures underscore Nigeria's stance on data privacy and consumer protection, setting a standard for other companies.
Meta has yet to release an official statement in response to the penalty and the final order. The tech giant is expected to appeal the decision, considering the substantial financial implications and potential impact on its operations in Nigeria.
This landmark ruling against Meta by the Federal Government of Nigeria highlights the importance of data privacy and fair market practices. It sets a significant precedent for multinational corporations, signaling that Nigeria will not tolerate violations of its laws. The case also emphasizes the growing global concern over data privacy and the need for companies to adhere to stringent data protection regulations.
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