Tribunal upholds FCCPC's $220m fine against Meta

The competition and consumer protection tribunal has upheld the $220 million fine imposed on Meta Platforms Incorporated by the Federal Competition and Consumer Protection Commission (FCCPC).

In a statement on Friday by Ondaje Ijagwu, the agency’s director for corporate affairs, FCCPC said the tribunal also awarded $35,000 to the commission as the cost of investigation.

On July 19, 2024, FCCPC imposed a fine of $220 million on Meta, the parent company of WhatsApp, Facebook, and Instagram, for multiple data privacy violations.

However, Meta said it would appeal the fine.

The case stemmed from a 38-month joint investigation by the FCCPC and the Nigeria Data Protection Commission (NDPC) into the privacy practices and consumer data policies of WhatsApp and Meta.

Delivering judgment on Thursday in Abuja, the tribunal led by Thomas Okosun ruled that the FCCPC acted within its constitutional and statutory powers in investigating and sanctioning the companies for alleged anti-competitive and exploitative practices.

The tribunal dismissed the appeals filed by Meta and WhatsApp, which challenged the legal basis of the commission’s findings and orders.

Instead, it upheld the commission’s position on nearly all contested issues.

Gbolahan Elias (SAN) led WhatsApp and Meta’s legal teams, while Babatunde Irukera led the FCCPC’s legal team.

According to the statement, both teams had made their final arguments on behalf of their respective clients on January 28.

‘FCCPC ADHERED TO DUE PROCESS’

The tribunal, in its ruling, found that the FCCPC adhered to due process and acted within the law.

It resolved issues one to seven primarily in favour of the commission.

“The Tribunal resolved Issues 1 to 7 largely in favour of the FCCPC, dismissing the appellants’ objections to the Commission’s findings, orders, and legal competence,” the statement reads.

“One of the central issues (Issue 3), which alleged a breach of fair hearing, was decided in favour of the Commission, with the Tribunal affirming that the FCCPC fully discharged its quasi-judicial responsibilities by affording the appellants ample opportunity to respond.

“The Tribunal found no violation of constitutional due process.

“On Issue 4, which questioned the Commission’s powers in 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.”

Commenting on the judgment, Tunji Bello, executive vice chairman (EVC) and chief executive officer (CEO) of the FCCPC, welcomed the ruling, describing it as a landmark judgment reinforcing the commission’s mandate to protect consumers and ensure fair market practices.

He commended the commission’s legal team for their diligence.

Bello reaffirmed the commission’s commitment to enforcing the provisions of the Federal Competition and Consumer Protection Act (FCCPA) in line with President Bola Tinubu’s renewed hope agenda.