The Federal Competition and Consumer Protection Commission (FCCPC) has opposed Whatsapp and Meta Platforms Incorporated’s bid to quash the $220 million penalty imposed on it by the Commission over alleged discriminatory practices in Nigeria.
This information is contained in the FCCPC’s brief of argument challenging the appeal filed by WhatsApp and its parent company, Meta Platforms Incorporated, before the Competition and Consumer Protection Tribunal.
The appeal seeks to quash the $220 million penalty, among other demands.
The Commission also disclosed the reasons for reducing its initial $6.18 billion penalty against Meta Platforms Incorporated to $220 million.
The Commission stated that the reduction was based on its resolve to remedy the company’s alleged discriminatory practices, rather than financially punishing (punitive) the company.
On July 19, 2024, the FCCPC announced it had imposed a $220 million penalty against Meta Platforms Incorporated, including WhatsApp, over alleged discriminatory practices against Nigerian data subjects and consumers.
Nairametrics previously reported that the FCCPC had expressed concerns about Meta’s allegedly abusive and invasive practices affecting data subjects and consumers in Nigeria.
But Meta’s legal team had appealed to the tribunal, insisting that the FCCPC’s decision, penalties, and demands were vague, excessive, technically impossible to implement, and unsupported by Nigerian law.
FCCPC Reacts to Meta’s Appeal
Following Meta’s appeal, the FCCPC’s legal team, led by Babatunde Irukera and Ikem Isierwena, formally submitted the Commission’s brief of argument to the tribunal on October 11, 2024, insisting that its penalties and demands be upheld.
- In their submission, exclusively seen by Nairametrics, the FCCPC revealed that on May 7, 2024, the Acting Director of Legal Services recommended issuing a Final Order based on the Commission’s findings, advising administrative penalties rather than criminal prosecution.
- The FCCPC explained that while the penalties were initially calculated at $6.18 billion, the Commission resolved not to take punitive measures against the companies, leading to the downward revision of the penalties.
“The penalties were calculated in line with the Administrative Penalties Regulations 2020 (APR).
“The initial penalty calculation totaled $6.18 billion, considering factors from Regulation 6 of the APR. On May 30, 2024, the Acting Executive Vice Chairman (EVC) directed a downward review to ensure penalties were remedial, not punitive. The revised penalty matrix on July 9, 2024, reduced the amount to $220.34 million, with investigation costs of $36,323.
“On July 17, 2024, the Acting EVC approved a mitigated penalty of $220 million and investigation costs of $35,000, instructing that the Final Order be issued under Section 148 of the FCCPA,” the Commission stated, stressing that the process adhered to procedural fairness and was based on a comprehensive review of evidence.
- Irukera emphasized the Commission’s role in ensuring swift regulatory compliance to prevent further harm to consumers and maintain market equilibrium.
“Consider the analogy of a bank fined by the Central Bank of Nigeria (CBN) for non-compliance with financial regulations. The fine serves as an administrative measure to maintain financial stability, independent of proving fraud or criminal activity in court,” he explained.
- He further argued that requiring criminal convictions rather than administrative sanction, as Meta contends, would collapse Nigeria’s regulatory framework and overburden the criminal justice system.
“If criminal convictions were the only means of addressing corporate anomalies, critical regulatory bodies in Nigeria would be rendered powerless, unable to act swiftly through administrative sanctions,” he stated.
- The FCCPC lawyer contended that Meta’s appeal seeks to undermine the regulatory framework and strip regulatory bodies of their administrative powers.
“The Appellants’ arguments aim to cripple this regulatory framework, undermining the administrative powers vested in these bodies by Nigerian law. The FCCPA empowers the Commission to impose penalties and recover investigation costs, avoiding overburdening the criminal justice system with issues better suited for administrative resolution,” he argued.
- The Commission also highlighted that its findings revealed Meta had engaged in exploitative practices violating constitutional guarantees by allowing unauthorized access to and misuse of private information.
“Allowing such violations to continue exposes 51 million Nigerian consumers—approximately 25% of the population—to ongoing breaches of their constitutional rights, a situation unequivocally against the public interest,” Irukera stated.
He urged the tribunal to dismiss the appeal and uphold the integrity of Nigeria’s legal system.
What You Should Know
Following the FCCPC’s orders, WhatsApp stated, “In 2021, we globally informed users about how talking to businesses would work. While there was initial confusion, it has proven quite popular.”
- Similar fines are not uncommon. Last year, the European Data Protection Board fined Meta a record €1.2 billion for non-compliance with EU privacy regulations.
- The legality of the FCCPC’s penalties against Meta Platforms Incorporated is now a matter for the courts to decide.
Nairametrics gathers that the case between Meta and FCCPC is adjourned to January 28, 2025 for hearing.
