In a landmark ruling, the Competition and Consumer Protection Tribunal has upheld the $220 million fine imposed on Meta Platforms Inc. (parent company of Facebook and WhatsApp) by the Federal Competition and Consumer Protection Commission (FCCPC) over discriminatory and exploitative practices against Nigerian consumers.
In a statement released Friday, Ondaje Ijagwu, Director of Corporate Affairs at the FCCPC, confirmed the tribunal’s decision, noting that the judgment also awarded $35,000 to cover the cost of the investigation.
Meta, WhatsApp Lose Appeal Over Consumer Exploitation Charges
Meta and WhatsApp had filed an appeal challenging the FCCPC’s final order issued on July 19, 2024, which followed a 38-month joint investigation by the FCCPC and the Nigeria Data Protection Commission (NDPC).
The investigation focused on privacy violations, data handling practices, and discriminatory terms of service imposed on Nigerian users, leading to findings that the platforms failed to uphold consumer protection standards.
Tribunal Ruling Validates FCCPC’s Powers
“The Tribunal determined that the Commission complied with prevailing laws, discharged its mandate, and exercised its powers within the confines of the 1999 Constitution (as amended),” the FCCPC statement reads.
The tribunal affirmed that the actions of Meta and WhatsApp clearly violated Nigeria’s consumer protection laws and that the FCCPC was correct in imposing penalties.
In addition to the $220 million administrative penalty, the tribunal ruled that Meta and WhatsApp must pay $35,000 to FCCPC as reimbursement for the cost of the investigation.
Why Meta Was Fined
According to the FCCPC, the fine stemmed from:
Discriminatory practices target Nigerian users with different terms than users in other countries.
Exploitative privacy policies and misuse of consumer data.
Failure to align with Nigeria’s data protection standards, in violation of the NDPC Act.
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NaijaBlogDaily Insight:
This ruling is a huge win for Nigerian digital rights and consumer protection, signaling that even global tech giants must play by the rules in the Nigerian market. It also reinforces the powers of the FCCPC in holding multinational corporations accountable.
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