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Nigeria’s Competition and Consumer Protection Tribunal (CCPT) has temporarily halted proceedings on the $220 million fine imposed on WhatsApp and its parent company, Meta, by the Federal Competition and Consumer Protection Commission (FCCPC) in July 2024.
Presiding over the case, Tribunal Chairman Thomas Okosun and a three-member panel concluded hearings from both parties but decided to delay their verdict, leaving the case in limbo.
Meta Challenges FCCPC’s Authority
Meta and WhatsApp have strongly contested the fine, arguing that the FCCPC lacks jurisdiction over data protection issues, which they claim fall under the purview of the Nigeria Data Protection Commission (NDPC). Additionally, they have criticized the FCCPC’s compliance requirements, particularly the demand to create a separate consent mechanism for every individual data point processed for Nigerian users.
Meta’s legal team, led by Senior Advocate of Nigeria (SAN) Professor Gbolahan Elias, has further argued that the penalty is excessive, calling it larger than the budgets of some Nigerian states. They also claim the FCCPC’s directives are ambiguous and unfeasible under Nigerian law.
FCCPC Accuses Meta of Data Privacy Violations
The FCCPC’s investigation alleges that Meta and WhatsApp violated consumer rights by permitting unauthorized access to user data. The Commission contends that Meta applies stricter data protection measures in Europe while offering subpar standards in Nigeria, framing the fine as a corrective measure rather than mere punishment.
To strengthen its case, the FCCPC attempted to submit its full investigative records for tribunal review, citing the need for transparency. However, Meta’s legal team objected, arguing that new documents included in the submission could unfairly influence the appeal process.
A Precedent for Nigeria’s Tech Regulation?
This case unfolds against a broader global backdrop of regulatory actions against Big Tech. In 2023, Meta was fined €1.2 billion by the European Union for non-compliance with privacy laws. Meta insists it adheres to international data protection standards, including in Nigeria.
Despite Meta’s objections, the FCCPC remains firm in its stance. The Commission’s Executive Vice Chairman, Babatunde Irukera, defended the fine, highlighting Meta’s $134.9 billion revenue in 2023 as evidence that the company has the financial capacity to comply with Nigerian regulations. He also accused Meta of exploiting Nigerian consumers by failing to uphold the same data protection standards enforced in Europe.
With the tribunal yet to set a date for its final ruling, the case is poised to shape Nigeria’s approach to regulating Big Tech and enforcing consumer data protection laws. Industry stakeholders and policymakers are closely watching, as the verdict could have far-reaching implications for the country’s digital economy.
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