Exploitation: Tribunal upholds FCCPC’s $220million fine against Meta/WhatsApp

The Competition and Consumer Protection Tribunal has upheld the fine slammed against Meta Platforms Incorporated (Facebook) and WhatsApp LLC by the Federal Competition and Consumer Protection Commission (FCCPC) for consumer exploitation and discrimination.

The hi-tech companies had appealed an earlier judgement in favour of FCCPC rejecting the fine.

The statement signed by Mr. Ondaje Ijagwu, Director of Corporate Affairs in the Commission, stated that the tribunal ruled that FCCPC complied with prevailing laws, discharged its mandate, and exercise its powers within the confines of the 1999 Constitution (as amended).

In addition to upholding the major aspects of the FCCPC’s Final Order, tye tribunal further awarded $35,000 to the FCCPC as cost of investigation.

The FCCPC had on July on July 19, 2024, issued a Final Order imposing a $220 million administrative penalty after concluding that the companies engaged in discriminatory and exploitative practices against Nigerian consumers.

The Commission, in collaboration with the Nigeria Data Protection Commission (NDPC), conducted an investigation on the companies since 2020 and sound them culpable.

Meta and WhatsApp appealed disagreed with the order last year and appeared to the tribunal, challenging the legal basis and the findings of the Commission.

Dismissing the appellants’ objections to the Commission’s findings, orders and legal competence, the tribunal further validated the Commission’s investigative procedures and processes, the tribunal resolved Issues 1 to 7 largely in favour of the FCCPC.

The tribunal found no violation of constitutional due process against the Commission.

On Issue 4, which questioned the Commission’s powers in matters of data protection and privacy, the tribunal held that the FCCPC acted within its statutory mandate, reaffirming its authority under Section 104 of the FCCPA to regulate competition and consumer protection even in regulated industries.

On Issue 5, which challenged the Commission’s findings regarding Meta’s privacy policies, the tribunal also resolved in the FCCPC’s favour.

The tribunal found no error in the Commission’s conclusions and held that the privacy policy in question did, in fact, offend Nigerian law.

While Issue 7 was largely resolved in favour of the Commission, the Tribunal set aside Order 7 of the Commission’s Final Order, stating that it lacked sufficient legal basis.

While expressing delight at the landmark judgement, FCCPC Executive Vice Chairman/CEO, Mr. Tunji Bello, thanked the Commission’s legal team for their exceptional diligence and forensic skills in assembling evidence and marshalling their argument.

He restated FCCPC’s unwavering commitment to not only championing the rights of Nigerian consumers but also ensuring fair business practices in the country in accordance with FCCPA (2018) and consistent with the Renewed Hope Agenda of President Bola Ahmed Tinubu.

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