The Federal Competition and Consumer Protection Commission (FCCPC) yesterday, imposed a $220 million fine on Meta, formerly known as Facebook and WhatsApp over alleged consumer rights’ infringements.
In a statement, acting Executive Vice Chairman/Chief Executive, FCCPC, Dr. Adamu Abdullahi, accused the social media platforms of denying Nigerian data subjects the right to self-determine; unauthorised transfer and sharing of Nigerian data-subjects personal data, including cross- border storage in “violation of then, and now prevailing law.”
The commission further indicted the platforms over alleged discrimination and disparate treatment; abuse of dominance; and tying and bundling.
The commission further mandated the Meta parties to take steps and actions to comply with prevailing law and cease the exploitation of Nigerian consumers as well as end their market abuse.
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The consumer rights’ agency also charged the Meta and Whatsapp to desist from future similar or other conduct/practices that do not meet nationally applicable standards and undermine the rights of consumers.
Abdullahi, reaffirmed the commission’s commitment to its respective mandates to protect the privacy of Nigerians under the constitution and all data protection laws and regulations, as well as ensure that consumer rights are respected.
He further mandated them to ensure that markets operate in a fair and transparent manner.
He said based on available evidence and sufficient probable cause, the commission issued an, “Order and Notice to Show Cause (ONSC) to WhatsApp LLC and Meta Platforms, Inc. (formerly called Facebook Inc.) jointly referred to as ‘Meta Parties’ in respect to this investigation.”
He said, “The subject of the ONSC was to relay the Commission’s investigative report in respect of its findings that the Meta Parties by their conduct have violated the above stated provisions of the FCCPA and NDPR (which was in force prior to the enactment and operationalisation of the NDPA (Nigeria Data Protection Act), 2023) and for the Meta Parties to show reasonable cause why the Commission should not proceed to enter its orders as final and enforceable pursuant to the FCCPA, particularly sections 17, 18, 155, and 159.”
According to the FCCPC boss, “Between May 2021 and December 2023, and over this period of 38 months, a joint investigation by the Commission, and the Nigeria Data Protection Commission (NDPC) into Meta Parties conduct, privacy policies, the operation thereof, and Meta Parties practices has evolved.
“Meta Parties have provided some information/evidence that are in part responsive to document requests and summons under the joint investigation. Meta Parties by themselves, and retained counsels have also repeatedly engaged with, and met with investigators and analysts from the Commission, and the NDPC, including as recently as April 4, 2024.
“The totality of the investigation has concluded that Meta Parties over a protracted period of time have engaged in conduct that constitute multiple and repeated, as well as continuing infringements of the FCCPA and NDPR, particularly, but not limited to abusive, and invasive practices against data subjects/consumers in Nigeria, such as appropriating personal data or information without consent, discriminatory practices against Nigerian data subjects/consumers or disparate treatment of consumers/data subjects compared with other jurisdictions with similar regulatory frameworks, abuse of dominant market position by forcing unscrupulous, exploitative, and non-compliant privacy policies which appropriated consumer personal information without the option or opportunity to self-determine or otherwise withhold or provide consent to the gathering, use, and/or sharing of such personal data.
He said, “Being satisfied with the significant evidence on the record, and that Meta Parties have been provided every opportunity to articulate any position, representations, refutations, explanations or defences of their conduct and practices under law, the commission have now entered a Final Order, and issued a penalty against Meta Parties.”
Meta Disagrees
Meta however said: “We disagree with the decision today as well as the fine and Meta will be appealing the decision.
“In 2021, we went to users globally to explain how talking to businesses among other things would work and while there was a lot of confusion then, it has actually proven quite popular,” the organisation said.
BRANDPOWER reports that the reaction follows a statement released by the FCCPC and signed by its acting Executive Chairman, Adamu Abdullahi, saying that Meta had denied Nigerian users control over their data.
The FCCPC said that Meta had also shared the users data without consent, and abused its market dominance.
According to the statement released to the media, the FCCPC’s final order imposed a monetary penalty of two hundred and twenty million U.S. Dollars only, on Meta.
The penalty is in accordance with the FCCPA 2018, and the Federal Competition and Consumer Protection (Administrative Penalties) Regulations 2020,” the statement said.
The FCCPC announced that it initiated its investigation in May 2021, based on evidence suggesting that Meta, through its platforms, had breached the provisions of the FCCPA 2018 and the Nigeria Data Protection Regulation 2019.
It stated that these regulations were in effect prior to the enactment and implementation of the Nigeria Data Protection Act 2023.
The competition protection body noted that Meta responded to document requests and summons by providing some information.
It stated that Meta’s representatives and retained legal counsel had consistently engaged with and met investigators and analysts from the commission and the NDPC, including as recently as April 4, 2024.
The FCCPC highlighted that its investigation uncovered evidence of Meta engaging in practices that were abusive and invasive towards data consumers in Nigeria.
This included collecting personal data without consent and implementing discriminatory practices against Nigerians, among other issues.
