The Competition and Consumer Protection Tribunal on Friday affirmed the ruling for a N220 million fine against Meta Platforms Incorporated (Facebook) and WhatsApp LLC for alleged serial violations of operational violations.
On July 19, 2024, the Federal Competition and Consumer Protection Commission (FCCPC) issued a final order imposing a $220 million administrative penalty against the two organizations.
The fine followed the conclusion of investigations by the Commission of the activities of the companies for alleged engagement in discriminatory and exploitative practices against Nigerian consumers in violation of the provisions of stipulated regulations.
Meta Platforms Incorporated (Facebook) and WhatsApp LLC had filed an appeal against the fine, particularly claiming the Commission lacked the legal authority to impose such sanctions against them.
However, after reviewing the appeal by the two organizations, the tribunal upheld the ruling by the Commission and affirmed the agency’s authority and actions in nearly all the contested issues.
Specifically, the Tribunal determined that the Commission complied with the provisions of the relevant laws in the handling of the matter in accordance with its mandate and within the confines of the 1999 Constitution (as amended).
Consequently, the three-member tribunal led by Justice Thomas Okosun ruled that the Commission did not err in the discharge of its mandate as its findings confirmed that the multiple actions by WhatsApp and Meta were in breach of the relevant laws.
Also, the tribunal reaffirmed the $220 million fine against Meta Platforms Incorporated and WhatsApp LLC as an administrative penalty, in addition to $35,000 award to the FCCPC as cost of investigation.
WhatsApp and Meta’s legal team was led by Professor Gbolahan Elias, a senior advocate of Nigeria (SAN), while the FCCPC’s legal team was led by its former Executive Vice Chairman, Babatunde Irukera.
Both teams had concluded their final arguments on behalf of their clients on January 28, 2025 as the climax of an investigation that began in 2020.
The case arose from a 38-month long joint investigation initiated by the FCCPC and the Nigeria Data Protection Commission (NDPC) into the conduct, privacy practices, and consumer data policies of Meta Platforms and WhatsApp.
In ruling on Meta’s appeal, the tribunal validated the Commission’s investigative procedures and processes and resolved Issues No. 1 to 7 largely in favour of the FCCPC, while dismissing the appellants’ objections to the Commission’s findings, orders, and legal competence.
On Issue No. 3, which was central to the case over alleged qbreach 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 to the case against them.
The Tribunal found no violation of constitutional due process.
On Issue No. 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.
In respect of Issue No. 5, which challenged the Commission’s findings regarding Meta’s privacy policies, the tribunal also resolved that there was no error in the Commission’s conclusions, holding that the privacy policy in question did, in fact, offend Nigerian law.
Issue No. 7 was largely resolved in favour of the Commission, with the tribunal setting aside Order 7 of the Commission’s Final Order, which stated that it lacked sufficient legal basis.
Expressing delight at the landmark judgement, FCCPC Executive Vice Chairman/CEO, Tunji Bello, thanked the Commission’s legal team for their exceptional diligence and forensic skills in assembling evidence and marshalling their arguments.
Bello 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.
