Tribunal upholds $220m fine on Meta, validates FCCPC’s investigative powers

The Competition and Consumer Protection Tribunal has upheld the $220 million fine imposed on Meta Platforms Incorporated by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC), marking a major victory for consumer rights enforcement in the country.

Announcing the tribunal’s verdict in a statement on Friday, FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the ruling reaffirms the commission’s authority under Nigerian law and its adherence to due process. The tribunal also awarded an additional $35,000 to the FCCPC to cover investigation costs.

The judgment was delivered by a three-member panel led by Hon. Thomas Okosun, which dismissed Meta and WhatsApp’s appeal challenging the legal basis, procedures, and findings of the commission’s investigation into their business practices.

According to Ijagwu, the tribunal concluded that the FCCPC “acted within the confines of the 1999 Constitution (as amended)” and exercised its statutory mandate correctly. It found that the commission’s conclusions regarding Meta and WhatsApp’s discriminatory and exploitative practices toward Nigerian consumers were supported by evidence and aligned with existing legal frameworks.

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The decision follows a comprehensive 38-month investigation launched in 2020 by the FCCPC in collaboration with the Nigeria Data Protection Commission (NDPC). The inquiry focused on the data privacy policies, user consent practices, and potential anti-competitive conduct of Meta’s platforms, especially WhatsApp.

In July 2024, the FCCPC issued a Final Order imposing a $220 million administrative penalty on Meta and WhatsApp. Dissatisfied with the outcome, the companies filed an appeal, citing concerns over fair hearing and the commission’s jurisdiction, particularly in areas involving data protection.

However, the tribunal rejected most of the appeal’s key arguments. Notably:

• On the issue of fair hearing, the tribunal ruled that Meta and WhatsApp were given adequate opportunity to present their case, and that the FCCPC had discharged its quasi-judicial obligations in full compliance with due process.
• On data protection powers, the tribunal confirmed that the FCCPC acted within its legal authority under Section 104 of the Federal Competition and Consumer Protection Act (FCCPA), and could intervene in regulated sectors when necessary to protect consumers.
• Regarding Meta’s privacy policy, the tribunal found no error in the commission’s conclusion that the policy violated Nigerian law.

While most issues were resolved in favor of the FCCPC, the tribunal did set aside one of the 13 orders contained in the Commission’s Final Order, Order 7, citing insufficient legal justification.

Reacting to the judgment, FCCPC Executive Vice Chairman and CEO, Mr. Tunji Bello, described the ruling as a landmark moment for consumer protection in Nigeria. He commended the commission’s legal team for their diligence and reaffirmed the agency’s commitment to enforcing fair business practices and safeguarding the interests of Nigerian consumers.

“This decision affirms our role as a frontline defender of consumer rights,” Bello said. “It also reinforces the message that even the biggest companies in the world must operate within the law when dealing with Nigerian citizens.”

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