Tribunal Upholds $220 Million Fine on WhatsApp and Meta Over Alleged Data Discrimination

• The tribunal ordered WhatsApp and Meta to pay an additional $35,000 to the FCCPC within 60 days
• The ruling dismissed the appeal filed by WhatsApp and Meta Platforms, which had contested the FCCPC’s directives as vague and technically impractical.
• The FCCPC’s investigation raised serious concerns about Meta’s data handling practices, which were described as potentially abusive and invasive.

In a significant ruling on Friday, Nigeria’s Competition and Consumer Protection Tribunal upheld a $220 million fine against WhatsApp and its parent company, Meta Platforms Incorporated.

Eko Hot Blog reports that the fine was initially imposed by the Federal Competition and Consumer Protection Commission (FCCPC) following an investigation into allegations of discriminatory data practices affecting Nigerian consumers.

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In addition to the substantial fine, the tribunal ordered WhatsApp and Meta to pay an additional $35,000 to the FCCPC within 60 days, reimbursing the Commission for the costs incurred during its investigation.

The ruling dismissed the appeal filed by WhatsApp and Meta Platforms, which had contested the FCCPC’s directives as vague and technically impractical.

The companies had argued that the expectations for compliance were unsupported by Nigerian law and constituted procedural errors.

The FCCPC’s investigation raised serious concerns about Meta’s data handling practices, which were described as potentially abusive and invasive.

The Commission highlighted the risk of unauthorized access to and misuse of private information of Nigerian users.

This decision sends a strong message about the importance of protecting consumer data and ensuring fair practices within the technology sector in Nigeria.

It also underscores the commitment of regulatory bodies like the FCCPC to hold companies accountable for their actions and safeguard the rights of Nigerian consumers.

WhatsApp and Meta Platforms Incorporated disputed the hefty $220 million fine imposed by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC), claiming they were denied a fair hearing prior to the penalty.

The companies further argued that the Commission’s expectations for building consent mechanisms for each Nigerian user’s data processing were unfeasible and prohibitively expensive.

In response, the FCCPC defended the fine, asserting that it aimed to rectify the alleged discriminatory practices rather than serve as a punishment.

The Commission emphasized that Meta’s actions violated constitutional guarantees, thus warranting substantial intervention.

During the tribunal proceedings, FCCPC representatives argued for the dismissal of the companies’ appeal, pointing to international legal precedents.

They suggested that foreign rulings should be considered persuasive despite not being directly applicable to Nigerian law.

In opposition, WhatsApp and Meta’s legal team, led by Professor Gbolahan Elias, challenged the relevance of foreign laws and refuted claims of market dominance.

They cited the availability of alternative platforms such as TikTok and Google Meet.

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Ultimately, the tribunal upheld the FCCPC’s decision, noting the validity of considering international legal precedents to form a comprehensive framework for the ruling.

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