Nigerian Tribunal upholds FCCPC’s $220 million penalty against Meta and WhatsApp for discriminatory practices

[dropcap]T[/dropcap]he Competition and Consumer Protection Tribunal today affirmed the Federal Competition and Consumer Protection Commission’s (FCCPC) authority and actions in a landmark judgment regarding the appeal filed by Meta Platforms Incorporated (Facebook) and WhatsApp LLC.

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The Tribunal upheld the FCCPC’s findings of discriminatory and exploitative practices against Nigerian consumers, imposing a $220 million administrative penalty on Meta and WhatsApp, along with $35,000 in investigation costs to the FCCPC.

The three-member Tribunal, led by Honorable Thomas Okosun, ruled that the FCCPC complied with prevailing laws, discharged its mandate appropriately, and acted within its constitutional powers.

The Tribunal specifically validated the FCCPC’s identification of multiple violations by WhatsApp and Meta.

The legal battle followed a 38-month joint investigation by the FCCPC and the Nigeria Data Protection Commission (NDPC) into Meta’s and WhatsApp’s conduct, privacy practices, and consumer data policies, culminating in the FCCPC’s Final Order issued on July 19, 2024, which levied the $220 million penalty. Meta and WhatsApp subsequently appealed the Order.

The Tribunal largely resolved Issues 1 to 7 in favor of the FCCPC, dismissing the appellants’ objections regarding the Commission’s findings, orders, and legal competence.

The Tribunal specifically determined that the Commission complied with prevailing laws, discharged its mandate, and exercised its powers within the confines of the 1999 Constitution (as amended),” stated the Competition and Consumer Protection Tribunal in its judgment.

Notably, the Tribunal affirmed that the FCCPC provided Meta and WhatsApp with adequate opportunity to respond, thus upholding the Commission’s adherence to fair hearing principles.

The Tribunal also validated the FCCPC’s authority in matters of data protection and privacy under Section 104 of the FCCPA. Furthermore, the Tribunal found no error in the FCCPC’s conclusion that Meta’s privacy policy violated Nigerian law.

While the Tribunal largely sided with the FCCPC, it set aside Order 7 of the Commission’s Final Order, citing a lack of sufficient legal basis.

Expressing his satisfaction with the judgment, FCCPC Executive Vice Chairman/CEO, Mr. Tunji Bello, commended the Commission’s legal team for their exceptional work.

Also read: Meta to appeal against $220m fine by FCCPC – WhatsApp

He reiterated the FCCPC’s unwavering commitment to protecting Nigerian consumers’ rights and ensuring fair business practices in line with the FCCPA (2018) and President Bola Ahmed Tinubu’s Renewed Hope Agenda.