Facebook, WhatsApp lose $200-million penalty appeal as consumer protection tribunal upholds FCCPC fine

The Competition and Consumer Protection Tribunal in Nigeria upheld a $200 million fine on Meta by the Federal Competition and Consumer Protection Commission (FCCPC) for allegedly violating data privacy rules, dismissing an appeal filed by Facebook (Meta Platforms Inc) and WhatsApp LLC. 

The allegations included unauthorized sharing of Nigerians’ data, discriminatory data handling, and abuse of market dominance. 

Ondaje Ijagwu, the consumer protection agency’s Director of Corporate Affairs, made the following statement after the verdict: “[The tribunal] ruled that the multiple actions by WhatsApp and Meta, for which the commission made findings of violations, were correctly identified.”

The renowned tech company, which dominates the global social media landscape with Facebook, Threads, Instagram, and WhatsApp, also faced an additional charge of $35,000 to cover the expenses of the investigation carried out by the FCCPC. 

This was due to a 38-month-long investigation conducted by the Nigeria Data Protection Commission and the FCCPC, during which the fine was initially imposed on June 19, 2024.

Earlier, however, Meta had denied the accusations and allegations brought against it. Despite this denial, Meta is now required to comply with the ruling by the end of June. In addition to the financial penalties, the tribunal also ordered the reinstatement of user control, submission of a compliance letter, update to the application, and suspension of data sharing with third parties.

Meta, found guilty of all the unauthorized practices presented, was judged under the jurisdiction of a three-member panel led by Thomas Okasun. The legal counsel for WhatsApp and Meta was led by Gbolahan Elias, while the FCCPC’s legal representation was headed by Babatunde Irukera.

This unfavourable verdict on the company’s part is expected to be a major blow to Meta, which is also currently facing a separate $200 million fine by the European Union.

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