Preem & Partners | 26th April, 2025
In a ruling delivered on Friday, the 25th of April, 2025, the Competition and Consumer Protection Tribunal [“the Tribunal”] affirmed the Federal Competition and Consumer Protection Commission’s [“FCCPC” or the “Commission”] imposition of a $220 million fine on Meta Platforms Inc. and its subsidiary, WhatsApp LLC.
As a background to the decision, the FCCPC, in collaboration with the Nigeria Data Protection Commission (NDPC), in 2021 conducted a comprehensive 38-month investigation into Meta and WhatsApp’s data handling and privacy practices, contained in WhatsApp’s 2021 Updated Privacy Policy which allowed Meta to and transfer data from its WhatsApp market to its Facebook market, and other third parties’ services without express consent sought and freely obtained from data subjects [WhatsApp users]. The investigation concluded that the companies engaged in discriminatory and exploitative practices against Nigerian consumers, including unauthorized data sharing and inadequate consent mechanisms. These actions were found to contravene Nigeria’s data protection and consumer rights laws and the FCCPC on July on the 19th of July, 2024, issued an Order mandating Meta and WhatsApp to immediately and forthwith, cease the tying and transfer of data from its WhatsApp market to its Facebook market, and other third parties’ services without express consent sought and freely obtained from data subjects, among other orders. The order also imposed a $220 million administrative penalty in Meta and WhatsApp.
Dissatisfied with the Order, Meta and WhatsApp appealed to the Competition and Consumer Protection Tribunal, challenging both the legal basis and the findings of the Commission. The Tribunal, led by Hon. Thomas Okosun, upheld the FCCPC’s findings, affirming that the Commission acted within its statutory mandate under the Federal Competition and Consumer Protection Act [FCCPA] of 2018. The Tribunal dismissed the core arguments raised by Meta and WhatsApp in their appeal [issues 1-7], including claims of unfair hearing and questions over the FCCPC’s jurisdiction in matters relating to data protection and privacy. In addition to affirming the $220 million fine imposed by the Commission, the Tribunal awarded an extra $35,000 to the FCCPC against Meta and WhatsApp to cover the costs of its investigation.
Indeed, this ruling is a significant development for data protection and consumer rights in Nigeria, emphaising Nigeria’s commitment to enforcing data privacy laws and holding multinational corporations accountable for their practices.
At Preem & Partners, we recognize the critical importance of robust data protection frameworks in fostering consumer trust and ensuring fair business practices. This landmark decision reinforces the necessity for companies to conduct thorough compliance audits and implement comprehensive data governance policies. We advise our clients to proactively assess their data handling procedures and ensure adherence to Nigeria’s data protection laws to mitigate legal risks and uphold consumer rights.