Federal Govt Fines Meta $220m For Privacy Violations & Market Abuse

Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has been fined $220 million by the Federal Government over the unauthorized appropriation of personal data without user consent, discriminatory practices against Nigerian users, and the abuse of Meta’s dominant market position.

The joint investigation, conducted by the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigeria Data Protection Commission (NDPC), revealed extensive and ongoing violations of Nigerian laws, following a comprehensive 38-month investigation into its data privacy practices and market behaviour.

According to information obtained from the Commission’s X account, Between May 2021 and December 2023, the investigation scrutinized Meta’s privacy policies and practices, uncovering multiple infringements of the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).

These violations include the unauthorized appropriation of personal data without user consent, discriminatory practices against Nigerian users, and the abuse of Meta’s dominant market position.

The investigation concluded that Meta engaged in abusive and invasive practices against Nigerian data subjects, such as transferring personal data across borders without authorization and forcing users to accept exploitative privacy policies. Despite being given numerous opportunities to present their case, Meta’s defences were deemed insufficient by the regulatory bodies.

The final order issued by the FCCPC mandates several corrective actions for Meta to comply with Nigerian laws. These include ensuring Nigerian users’ right to data self-determination, ceasing unauthorized data transfers, and eliminating discriminatory practices. The order also imposes a $220 million penalty on Meta, emphasizing the gravity of the violations.

“Being satisfied with the significant evidence on the record, and that Meta Parties have been provided with every opportunity to articulate any position, representations, refutations, explanations or defences of their conduct and practices under law, the Commission has now entered a Final Order, and issued a penalty against Meta Parties. The Final Order more elaborately describes the specific conduct or practices of the Meta Parties, the relationship between Meta Parties concerning the infringements, particularly about.

“Denying Nigerian data subjects the right to self-determine; Unauthorized transfer and sharing of Nigerian data-subjects personal data, including cross-border storage in violation of then, and now prevailing law: Discrimination and disparate treatment; Dominance; Abuse of dominance, and Tying and bundling.”

“The Final Order of the Commission mandates steps and actions Meta Parties must take to comply with prevailing law and cease the exploitation of Nigerian consumers and their market abuse, as well as desist from future similar or other conduct/practices that do not meet nationally applicable standards and undermine the rights of consumers.”

“The Final order also imposes a monetary penalty of Two Hundred and Twenty Million U.S. Dollars only ($220,000,000.00) (at prevailing exchange rate where applicable) which penalty is in accordance with the FCCPA 2018, and the Federal Competition and Consumer Protection (Administrative Penalties) Regulations 2020 (APR).”

Meta has yet to release a statement in response to the penalty and the final order. The commission noted that the penalty underscores the government’s commitment to protecting consumer rights and data privacy, setting a significant precedent for multinational companies operating within its borders.