Business
Tribunal Upholds FCCPC’s $220m Fine Against Meta, Validates Consumer Protection Mandate
The Competition and Consumer Protection Tribunal has upheld the $220 million fine imposed on Meta Platforms Inc. by the Federal Competition and Consumer Protection Commission (FCCPC), marking a major victory for the commission in its crackdown on anti-consumer practices.
FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, confirmed the ruling in a statement on Friday, noting that the tribunal also awarded the commission $35,000 in costs related to its investigation.
According to Ijagwu, the tribunal ruled that the FCCPC acted within its legal authority as enshrined in the 1999 Constitution (as amended), and that its findings and procedures during the investigation into Meta and its subsidiary, WhatsApp, were legally sound.
The tribunal’s three-member panel, led by Hon. Thomas Okosun, delivered the ruling, dismissing Meta’s appeal and upholding the Commission’s Final Order of July 19, 2024, which accused the tech giant of engaging in discriminatory and exploitative practices against Nigerian consumers.
The FCCPC began its probe in 2020 in collaboration with the Nigeria Data Protection Commission (NDPC), following concerns over Meta’s data practices and privacy policies. The joint investigation lasted 38 months and concluded that Meta violated consumer protection laws.
Meta and WhatsApp, represented by Senior Advocate of Nigeria, Professor Gbolahan Elias, challenged the findings and penalty, arguing that the commission lacked jurisdiction and violated their right to fair hearing. FCCPC’s legal team was led by Mr. Babatunde Irukera.
In its judgment, the tribunal dismissed the appeal on nearly all counts, resolving Issues 1 through 7 in favour of the FCCPC. On Issue 3, which alleged a breach of fair hearing, the tribunal ruled that the FCCPC had adequately fulfilled its quasi-judicial obligations by giving Meta and WhatsApp ample opportunity to respond.
On Issue 4, which questioned the commission’s jurisdiction over data privacy matters, the tribunal affirmed that FCCPC had acted within its powers under Section 104 of the FCCPA, 2018, even in sectors already regulated by other agencies.
The tribunal also upheld the FCCPC’s findings on Meta’s privacy policies, stating that the policies violated Nigerian law. However, it struck out Order 7 of the Commission’s Final Order for lacking sufficient legal backing.
Reacting to the judgment, FCCPC’s Executive Vice Chairman/CEO, Mr. Tunji Bello, hailed the decision as a landmark victory for consumer rights and regulatory integrity in Nigeria. He praised the Commission’s legal team for their rigorous and methodical approach to the case.
Bello reiterated FCCPC’s commitment to upholding fair competition and protecting consumer rights in alignment with the Federal Competition and Consumer Protection Act (FCCPA) and President Bola Tinubu’s Renewed Hope Agenda.