FCCPC Justifies $220 Million Penalty on Meta, WhatsApp for Alleged Discrimination Against Nigerian Consumers
The Federal Competition and Consumer Protection Commission (FCCPC) has justified the substantial $220 million penalty on WhatsApp and its parent company, Meta Platforms Incorporated.
The FCCPC made this announcement on its X page on August 1, 2024, emphasising its commitment towards establishing a fairer digital market in Nigeria.
The FCCPC criticised WhatsApp’s suggestion that it might exit the Nigerian market due to the penalty, calling it a strategic attempt to sway public opinion and pressure the commission into reconsidering its decision.
Recall that the FCCPC, an agency under the Federal Ministry of Industry, Trade, and Investment (FMITI), imposed the penalty in response to alleged discriminatory practices by Meta against Nigerian consumers and data.
An investigation by the FCCPC revealed that Meta Platforms had repeatedly violated Nigeria’s consumer protection and data laws.
The findings prompted the commission to issue the $220 million fine to deter future violations and hold the company accountable.
Meta Platforms and WhatsApp have appealed the FCCPC’s decision. Their legal team argued, in documents obtained by Nairametrics, that the FCCPC denied them a fair hearing by not providing an opportunity to understand the penalty’s basis or respond to it.
They also contended that implementing the required consent mechanisms for each data point processed by Nigerian consumers would be prohibitively expensive.
Despite the appeal, the FCCPC stands firm on its findings. It highlighted that similar regulatory actions have been taken in other countries where Meta operates without forcing the company to leave those markets.
“The FCCPC’s actions are based on legitimate concerns about consumer protection and data privacy, and the order is a positive step toward a fairer digital market in Nigeria.
“Similar measures are taken in other jurisdictions without forcing companies to leave the market. The case of Nigeria will not be different,” the commission stated.
According to Statista, Nigeria had nearly 41.6 million Facebook users as of May 2023, representing 18.5% of the population.
In response to the FCCPC’s actions, WhatsApp defended its practices, stating, “In 2021, we went to users globally to explain how talking to businesses, among other things, would work. While there was a lot of confusion then, it has actually proven quite popular.”
The penalty against Meta is part of a broader trend of regulatory scrutiny facing tech giants globally.
Last year, the European Data Protection Agency fined Facebook a record €1.2 billion for non-compliance with EU privacy regulations.
The FCCPC’s actions reflect a growing emphasis on protecting consumer rights and data privacy in the digital age.
