In a significant ruling on Friday, Nigeria’s Competition and Consumer Protection Tribunal upheld a $220 million fine against Meta Platforms Incorporated and WhatsApp, following accusations of discriminatory data practices that violated Nigeria’s data protection and consumer rights laws. The fine, initially imposed by the Federal Competition and Consumer Protection Commission (FCCPC), was upheld by the tribunal after the social media giants’ appeal was dismissed.
The case dates back to an investigation by the FCCPC into Meta’s practices concerning the collection, storage, and sharing of data from Nigerian users of WhatsApp and Facebook. The FCCPC accused Meta and WhatsApp of engaging in abusive and invasive practices that infringed on users’ privacy rights and violated Nigeria’s data protection laws. Among the specific allegations were that the companies failed to adequately inform users about how their data would be shared and processed, particularly with third-party platforms like Facebook.
The FCCPC also claimed that Meta’s data-sharing policies, which linked user information from WhatsApp with Facebook and other third parties, violated Nigerian consumer protection regulations. The investigation culminated in the FCCPC imposing the $220 million penalty, which it stated was meant to remedy the alleged harm caused by these practices, rather than serve as a financial punishment.
Meta and WhatsApp appealed the FCCPC’s decision, arguing that the penalty was excessive and unjustified. The social media giants cited several reasons for their appeal, including claims of vague directives and technical challenges in complying with the FCCPC’s requirements. Specifically, they argued that the demand to provide a consent mechanism for every data point processed by Nigerian users was unrealistic and expensive. Meta also contended that the $220 million fine was disproportionate, highlighting that the penalty had not been properly explained or calculated.
Furthermore, the appellants argued that the FCCPC’s directives were based on vague and unclear laws, and that some of the actions required by the Commission were technically impossible to implement within the stipulated timeframe. They also claimed that the penalty should be overturned on the grounds of procedural errors, asserting that they had not been given sufficient opportunity to understand how the fine was calculated or to respond to its imposition.
The legal team representing Meta and WhatsApp, led by Professor Gbolahan Elias (SAN), urged the tribunal to consider these issues and overturn the fine. They argued that the FCCPC had exceeded its legal mandate and had not followed due process in imposing such an extensive penalty.
On the other hand, the FCCPC’s legal team, headed by Babatunde Irukera (SAN), countered the claims, maintaining that the penalties were justified based on the evidence gathered during the investigation. They argued that Meta’s actions violated Nigerian laws protecting consumer data and that the fine was in line with the Commission’s role in enforcing those laws. Irukera stressed that Meta and WhatsApp had engaged in exploitative practices, including unauthorized access to and misuse of user data, and that the penalty was necessary to address these breaches.
After considering the arguments presented by both sides, the tribunal, led by Thomas Okosun, issued its verdict on Friday, upholding the $220 million fine and rejecting the appeal made by Meta and WhatsApp. The tribunal also dismissed the claims that the FCCPC had denied the companies a fair hearing, stating that the social media giants had been given ample opportunity to present their case.
The tribunal found that the FCCPC had acted within its legal rights and had properly exercised its mandate in addressing the data protection violations. It ruled that the Commission had not exceeded its powers and that its orders were valid under Nigerian law. The tribunal also rejected the assertion that foreign legal precedents should not be considered, agreeing that while foreign laws are not binding in Nigeria, they can be persuasive when examining similar legal issues.
The tribunal also found that the FCCPC had appropriately relied on its internal records and the findings from its investigation to impose the penalty, even though certain records were excluded during the appeal. The tribunal ruled that the exclusion of some documents did not affect the overall validity of the FCCPC’s actions.
Key Orders from the Tribunal
As part of its ruling, the tribunal issued several key orders that Meta and WhatsApp must comply with:
1. Reinstatement of User Control: Meta was ordered to immediately reinstate Nigerian users’ right to control how their data is shared. This includes providing users with the ability to opt out of data-sharing with third parties, such as Facebook.
2. Compliance Letter: Meta was required to submit a letter of compliance by July 1, 2025, confirming that it had implemented the necessary changes to its data-sharing policies.
3. Update to the Application: Meta was ordered to update its app to ensure that Nigerian users can fully exercise their right to control their data. The update must include a clear and transparent consent mechanism for every data point processed.
4. Suspension of Data Sharing with Third Parties: The tribunal directed Meta to stop sharing Nigerian users’ data with Facebook and other third parties without obtaining explicit consent from users. Meta was instructed to revert to its 2016 data-sharing policy.
5. Reimbursement of Investigation Costs: Meta was ordered to reimburse the FCCPC $35,000 to cover the costs of the investigation into its practices.
6. Penalty Payment: Meta was given 60 days from April 30, 2025, to pay the full $220 million fine imposed by the FCCPC.
The tribunal’s ruling has significant implications not only for Meta and WhatsApp but also for other international companies operating in Nigeria and similar jurisdictions. The decision underscores the growing importance of data protection laws and the willingness of Nigerian regulators to enforce these laws against multinational companies. The ruling highlights the need for companies to respect local data privacy regulations and to ensure transparency in their data collection and sharing practices.
The case also sets a precedent for how the Nigerian legal system will handle data protection violations in the future. The tribunal’s reliance on local laws and its validation of the FCCPC’s actions indicate a strong commitment to enforcing consumer rights and protecting the privacy of Nigerian citizens.
The decision comes at a time when global regulators, particularly in the European Union, have been tightening regulations around data protection. Meta, Amazon, and Google have all faced substantial fines under the EU’s General Data Protection Regulation (GDPR), and Nigeria’s ruling aligns with this broader trend of increased scrutiny of Big Tech companies.
The tribunal’s ruling against Meta and WhatsApp represents a significant victory for consumer protection in Nigeria. It reinforces the importance of respecting local laws and upholding users’ privacy rights in the face of global digital giants. Meta now faces the challenge of complying with the tribunal’s orders and ensuring that Nigerian users are given more control over their personal data. The case is a reminder to international companies that operating in Nigeria comes with the responsibility to adhere to local regulations, particularly when it comes to data privacy and consumer protection.
