Saturday, 20 July 2024 04:42

FG imposes $220m fine on Meta - owner of Facebook and WhatsApp - for data privacy violations

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The Federal Competition and Consumer Protection Commission (FCCPC) has concluded an investigation into Meta Platforms, Inc. and WhatsApp LLC, collectively referred to as Meta Parties, finding them guilty of multiple and repeated violations of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and Nigeria Data Protection Regulation (NDPR) 2019. As a result, the Commission has issued a Final Order imposing a $220 million penalty on the Meta Parties.

The investigation, which began in May 2021, was conducted jointly by the FCCPC and the Nigeria Data Protection Commission (NDPC). Over a span of 38 months, the investigation scrutinized Meta Parties' privacy policies and practices, uncovering abusive and invasive conduct against Nigerian consumers. These practices included unauthorized appropriation of personal data, discriminatory treatment of Nigerian data subjects, and the imposition of exploitative privacy policies without proper consent.

Despite multiple engagements with the Commission, Meta Parties failed to provide satisfactory defenses or justifications for their actions. The Final Order outlines specific violations, including the denial of data subjects' rights to self-determine, unauthorized cross-border data transfers, discriminatory practices, abuse of dominant market position, and unlawful tying and bundling of services.

The FCCPC has mandated Meta Parties to take corrective measures to comply with Nigerian law, cease exploitative practices, and ensure fair treatment of Nigerian consumers. The $220 million fine, imposed in accordance with the FCCPA 2018 and the Federal Competition and Consumer Protection (Administrative Penalties) Regulations 2020, underscores the Commission's commitment to protecting consumer rights and maintaining market transparency.

Adamu Abdullahi, Acting Executive Vice Chairman/CEO of the FCCPC, emphasized the importance of the collaboration with the NDPC, highlighting the joint effort to enforce compliance and accountability in data protection laws.

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