From Adanna Nnamani, Abuja
The Competition and Consumer Protection Tribunal has ordered WhatsApp and Meta Platforms Incorporated to pay a substantial penalty of $220 million and an additional $35,000 to the Federal Competition and Consumer Protection Commission (FCCPC) within 60 days.
This decision comes in response to data discrimination practices identified during an investigation into the companies’ operations in Nigeria. The tribunal on Friday, upheld the FCCPC’s imposition of the $220 million fine, saying that the penalty was justified based on the companies’ alleged discriminatory practices affecting Nigerian consumers.
The FCCPC had further requested reimbursement for the costs incurred during its investigation of the tech giants.
WhatsApp and Meta Platforms had previously appealed the hefty fine, arguing against the characteristics of the FCCPC’s directives, which they deemed vague and technically impractical to execute within the designated time frame. They presented 22 points for consideration, claiming that the expectations for compliance were unsupported by Nigerian law and constituted procedural errors. The investigation revealed serious concerns about Meta’s data handling practices, which the FCCPC described as potentially abusive and invasive, raising alarms about unauthorized access to and misuse of private information of Nigerian users.
The companies argued that the FCCPC failed to grant them a fair hearing prior to levying such a significant penalty. They contended that the Commission’s requirements for building a consent mechanism for each data point processed by Nigerian users were unrealistic and exorbitantly costly.
In defence of the penalty, the FCCPC maintained that the fine was not merely punitive, but rather a necessary measure to rectify the companies’ alleged discriminatory behaviours. The commission said that Meta’s actions violated constitutional guarantees, thereby justifying the need for substantial intervention.
During the tribunal proceedings, FCCPC representatives urged the adjudicating body to dismiss the appeal, asserting that the legal framework and past rulings from foreign jurisdictions should be considered persuasive, despite not being directly applicable to Nigerian law.
WhatsApp and Meta’s legal team, led by Professor Gbolahan Elias, urged the tribunal to disregard foreign laws, refuting claims of market dominance by pointing out the availability of alternative platforms like TikTok and Google Meet.
The tribunal concluded that the FCCPC’s reliance on international legal precedents was valid and provided a comprehensive framework for their ruling.