In a landmark decision, Nigeria’s Competition and Consumer Protection Tribunal has upheld a $220 million fine against Meta Platforms Incorporated and its subsidiary, WhatsApp, for data discrimination practices affecting Nigerian users. The Tribunal also ordered the payment of an additional $35,000 to the Federal Competition and Consumer Protection Commission (FCCPC) to cover investigative costs. Both sums must be paid within 60 days.
The three-member panel of the tribunal, chaired by Thomas Okosun, dismissed the appeal brought by Meta and WhatsApp, affirming the FCCPC’s penalties and directives.
Meta and WhatsApp, represented by legal luminary Professor Gbolahan Elias (SAN), had contested the FCCPC’s penalty, citing 22 grounds for appeal, including claims of vague directives, unjustifiable data-sharing orders, and procedural errors. They argued that the FCCPC’s instructions were impractical, lacked clarity, and did not align with Nigerian law.
The appeal also claimed the companies were denied fair hearing. They argued they were not given sufficient opportunity to understand or respond to the basis upon which the $220 million fine was calculated. They further contended that the order to build consent mechanisms for each user data point processed in Nigeria was neither feasible nor cost-effective.
However, the FCCPC, represented by Babatunde Irukera (SAN), a former Executive Vice Chairman of the Commission, countered the claims, asserting that the penalty was not punitive but corrective, aimed at addressing alleged discriminatory practices by Meta in the Nigerian digital space.
Irukera defended the Commission’s actions, stating that Meta’s practices violated consumer rights and constitutional guarantees by enabling unauthorised access to and misuse of private information. He also submitted that, although foreign laws were not binding, they served as persuasive authority in similar regulatory contexts.
Meta’s legal team argued that no abuse of market dominance had occurred, noting that users had alternatives such as TikTok and Google Meet. They urged the tribunal to disregard foreign precedents that are not recognised under Nigerian law.
In its ruling, the tribunal found no merit in the arguments presented by Meta and WhatsApp. It held that the FCCPC’s actions were valid and within the bounds of the FCCPC Act and the Evidence Act. The tribunal also confirmed that Meta and WhatsApp were granted fair hearing.
“The appellants were given ample opportunity to be heard,” said Okosun.
“The tribunal finds that the FCCPC did not exceed its powers while making orders in respect to data protection,” he added.
On the issue of consent and data sharing, the tribunal ruled that transferring user data to third parties without explicit consent contravenes Nigerian data protection laws. It agreed with the FCCPC that WhatsApp and Meta’s privacy policies breached domestic legal standards.
“The tribunal finds no error in the overall orders of the FCCPC,” it ruled.
“Accordingly, the administrative penalties of the FCCPC were lawfully imposed on Meta and WhatsApp,” the tribunal added.
Tribunal Orders
Following its verdict, the tribunal issued several directives:
- Meta must immediately reinstate the right of Nigerian users to control how their data is shared.
- By July 1, 2025, Meta is required to submit a letter of compliance to the FCCPC.
- Within 10 days, Meta must provide the FCCPC and Nigeria Data Protection Commission (NDPC) with a proposed user data policy and publish it.
- Meta must cease sharing Nigerian user information with Facebook and third parties, reverting to its 2016 data-sharing framework.
- WhatsApp data must no longer be tied to Facebook or any third-party platform without obtaining explicit consent from Nigerian users.
- Meta must provide proof of compliance with these requirements.Meta is ordered to reimburse the FCCPC with $35,000 for investigative expenses.
- The $220 million fine must be paid no later than 60 days from April 30, 2025.
In response to the ruling, WhatsApp reiterated: “In 2021, we globally informed users about how talking to businesses would work. While there was initial confusion, it has proven quite popular.”
Globally, Big Tech firms have faced similar penalties. In Europe, Meta was fined a record €1.2 billion by the European Data Protection Board for violations of the General Data Protection Regulation (GDPR).
This ruling is a significant step in Nigeria’s regulatory efforts to hold digital giants accountable for consumer rights and data protection violations.
