Nigeria rebuffs Meta's threat to quit country over data privacy fines

The Federal Competition and Consumer Protection Commission (FCCPC) has dismissed Meta’s claim that it may exit Nigeria after being fined by the West African country, calling it a “calculated move” to force the commission to reconsider its stance on data privacy regulations.

The BBC reports that Meta stated in court documents that it may have to shut down Facebook and Instagram in Nigeria “to mitigate the risk of enforcement measures.”

In a statement on Saturday, the FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said Meta has faced similar penalties in the European Union and countries like the United States, India, South Korea, France, and Australia, without threatening to exit those markets.

“Threatening to leave Nigeria does not absolve Meta of liabilities for the outcome of a judicial process,” Mr Ijagwu wrote.

According to him, threatening to leave Nigeria does not absolve Meta of its liabilities following a ruling of the Competition and Consumer Protection Tribunal.

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“The recent affirmation of FCCPC’s final order by the Competition and Consumer Protection Tribunal requires Meta Parties to take steps to comply with Nigerian law, stop exploiting Nigerian consumers, change their practices to meet Nigerian standards, and respect consumer rights, consistent with international best practices.

“For the avoidance of doubt, the FCCPC remains committed in its pursuit of consumer protection and data privacy towards ensuring a fairer digital market in Nigeria,” he said.

The FCCPC had investigated Meta (owners of Facebook and WhatsApp) for allegedly violating the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).

The commission found that Meta engaged in multiple and repeated infringements, including denying Nigerians control over their data, transferring user data without authorisation, and discriminating against Nigerian users.

Meta’s threat to exit Nigeria has sparked concerns, particularly among entrepreneurs and small business owners who rely heavily on its platforms for customer outreach and sales.

According to Statista, Nigeria has a significant user base on WhatsApp, Instagram, and Facebook. While WhatsApp has 51 million active Nigerian users, Instagram has over 12.6 million users, and Facebook had about 36.75 million users as of January 2024.

$220 million fine

In 2020, the FCCPC and the Nigeria Data Protection Commission (NDPC) began a joint investigation into the privacy practices and consumer data policies of Meta’s platforms, including Facebook, Instagram and WhatsApp.

At the end of its years-long investigation, the agencies found that Meta engaged in discriminatory and exploitative practices against Nigerian consumers, which is in violation of the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).

In 2024, the FCCPC slammed Meta and Whatsapp with a $220 million fine for its infractions.

Meta challenged the FCCPC’s penalties at the Competition and Consumer Protection Tribunal, but its appeal was unsuccessful.

The tribunal dismissed Meta’s objections. It also found that the FCCPC followed due process and afforded Meta ample opportunity to respond to allegations of violating Nigerian data protection laws.

The tribunal affirmed the FCCPC’s authority to regulate competition and consumer protection, including in data privacy matters. While the tribunal set aside one of the FCCPC’s orders for lacking sufficient legal basis, it upheld the commission’s conclusions that Meta’s privacy policy contravenes Nigerian law.

Meta penalised in USA, European Union

Meta has faced intense scrutiny over data privacy, with governments and regulators worldwide investigating its handling of user data.

In July 2024, Meta settled a $1.4 billion lawsuit by the Texas government that accused the company of using the personal biometric data of Texan residents without their permission.

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The state’s 2009 data privacy law protects residents’ biometric data like fingerprints and facial scans.

Meta also faced heavy penalties in the European Union. In April, Meta was fined €200 million for breaching the EU Digital Markets Act (DMA), which mandates that businesses give consumers a service that uses less of their personal data.

However, Meta’s ‘Consent or Pay’ advertising model was not compliant with the DMA.

In contrast to its stance in Nigeria, Meta chose to comply with penalties in other countries where it faced similar data privacy issues, rather than threatening to exit those markets.