The Nigerian Tribunal for Competition and Consumer Protection has ordered Meta Platforms, Inc. and its subsidiary WhatsApp LLC to pay a substantial $220 million administrative penalty. This significant ruling comes after the companies were found guilty of data breaches and discriminatory practices affecting Nigerian consumers. In addition to the penalty, Meta and WhatsApp must also reimburse the Federal Competition and Consumer Protection Commission (FCCPC) $35,000 to cover the costs of its extensive investigation, with payment due within 60 days.

This verdict was the outcome of an appeal hearing filed by Meta, following an in-depth investigation initiated in May 2021 by the FCCPC, in collaboration with the Nigeria Data Protection Commission (NDPC). The 38-month inquiry meticulously reviewed Meta’s conduct and privacy practices, specifically targeting alleged violations of the Federal Competition and Consumer Protection Act (FCCPA) 2018, the Nigeria Data Protection Regulation (NDPR) 2019, and other pertinent laws. The investigation focused on potential breaches impacting the data privacy of Nigerian users.

The tribunal's three-member panel, chaired by Thomas Okosun, delivered a comprehensive judgment. The panel affirmed the appropriateness and legal persuasiveness of the FCCPC's reliance on foreign decisions in its findings. It also upheld the validity of the FCCPC’s original orders, confirming they were executed in strict adherence to the stipulated FCCPC Act and the Evidence Act. Critically, Meta and WhatsApp were deemed to have failed in providing credible evidence to counter the Commission’s conclusions regarding the alleged violations.

Addressing Meta’s fair hearing claims, Okosun stated that the appellants were granted ample opportunity to present their case, thus validating the FCCPC’s process. He further underscored the FCCPC’s mandate to address issues of market dominance within its jurisdiction, concluding that the Commission did not exceed its powers in issuing orders related to data protection. The tribunal unequivocally found Meta and WhatsApp guilty of data privacy breaches, which directly contravene Nigeria’s data protection laws, affirming that "the administrative penalties of the FCCPC were lawfully imposed."

In its final and binding decision, the tribunal imposed several directives on Meta and WhatsApp. Beyond the financial penalties, the companies are mandated to reinstate the right of Nigerian users to determine how their data is shared and must submit a letter of compliance to this effect by July 1, 2025. Furthermore, within 10 days, Meta parties are directed to submit a comprehensive working policy outlining their intent to protect users’ data and to revert to their data-sharing policy of 2016. This proposed policy must also be provided to the FCCPC and NDPC and subsequently published. A crucial requirement is that Meta and WhatsApp must cease linking WhatsApp data to Facebook and other third parties without formally seeking and obtaining explicit consent from Nigerian users, with evidence of compliance required.

Meta and WhatsApp vigorously contested the initial sanctions, appealing the decision based on 22 specific reasons. Their legal team, led by Professor Gbolahan Elias (SAN), argued that the FCCPC had denied them a fair hearing by imposing a substantial penalty without transparently detailing its calculation methodology. They also contended that establishing a consent framework for their vast number of Nigerian users would be logistically impossible and financially prohibitive. Conversely, the FCCPC’s legal team, led by Babatunde Irukera (SAN), urged the tribunal to uphold the Commission’s orders, asserting that while foreign law is not strictly binding, it serves as persuasive precedent in similar legal contexts. The FCCPC maintained that the $220 million penalty was a remedial measure against the company’s discriminatory and exploitative practices that violated constitutional laws, rather than merely a punitive financial imposition. The tribunal ultimately ruled against Meta and WhatsApp on both submissions, concluding that their appeal lacked sufficient weight.

This ruling places additional pressure on Meta, which is currently embroiled in multiple legal challenges globally. Recent weeks have seen the European Union’s antitrust regulators levy fines against tech giants, including a $227 million fine against Meta, as part of landmark legislation aimed at curbing the power of Big Tech companies amid market monopoly allegations. Concurrently, the U.S. Federal Trade Commission (FTC) has a pending lawsuit alleging that Meta acquired Instagram in 2012 and WhatsApp in 2014 specifically to stifle competition and establish a monopoly. If the FTC’s allegations are proven, Meta could face orders to divest both platforms.