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      Regulatory Showdown: Nigeria’s FCCPC holds Meta accountable in a $220 Billion fine

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    Home»Big Tech & Startups»Regulatory Showdown: Nigeria’s FCCPC holds Meta accountable in a $220 Billion fine
    Big Tech & Startups

    Regulatory Showdown: Nigeria’s FCCPC holds Meta accountable in a $220 Billion fine

    preciousBy preciousMay 19, 2025No Comments16 Views
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    Photo by DREW ANGERER/AFP via Getty Images

    In a landmark regulatory showdown, Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) levied an astonishing $220 billion fine against Meta, making it one of the largest penalties ever imposed on a global tech firm in Africa’s most populous nation. In response, Meta, whose Nigerian user base ranks as its 10th largest market, threatened to withdraw its services from the country, a move that stirred intense public debate but failed to sway the Commission’s resolve.

    Undeterred by Meta’s warnings, the FCCPC issued a pointed statement affirming the penalty and characterizing the company’s threat as “a calculated move aimed at inducing negative public reaction and potentially pressuring the FCCPC to reconsider its decision.” This unwavering stance highlights Nigeria’s commitment to enforcing competition and consumer-protection laws, even when confronting one of the world’s most influential technology platforms.

    The investigation into Meta Platforms Inc. and Whatsapp LLC (jointly referred to as “Meta Parties”) started in 2020, with the FCCPC finding that the social media giant had allegedly engaged in multiple and repeated violations of the Nigerian Data Protection Regulation (NDPR) and the Federal Competition and Consumer Protection Act (FCCPA) of 2018. 

    According to the Commission’s findings, “The infringements included denying Nigerians the right to control their personal data, transferring and sharing Nigerian user data without authorization, discriminating against Nigerian users compared to users in other jurisdictions and abusing their dominant market position by forcing unfair privacy policies.”

    This 38-month long joint investigation by the FCCPC and the Nigerian Data Protection Commission (NDPC) was then presented to the Competition and Consumer Protection Tribunal, a quasi-judicial arm of the Commission, for judgement. On July 19, 2024, the tribunal issued a final judgement that confirmed that the American company had indeed engaged in several violations against its Nigerian consumers. Thus, a Final Order imposing a $220 million fine was issued, alongside additional fines by other agencies amounting to the sum of $70 million for other regulatory breaches.

    Meta Parties’ legal team, led by Professor Gbolahan Elias (SAN), however, filed for an appeal as they were not satisfied with the Tribunal’s judgement. According to the statement released by the Commission on April 25, 2025, while ruling on this appeal, they determined that “the commission [FCCPC] complied with prevailing laws, discharged its mandate, and exercised its powers within the confines of the 1999 Constitution (as anmended) [SIC].”

    “It ruled that the multiple actions by Whatsapp and Meta, for which the Commission made findings of violations, were correctly identified, and that the Commission did not err in making those findings,” it added.

    In addition to the $220 million fine, the Tribunal issued another $35,000 as a cost of FCCPC’s investigation that Meta Parties needed to cover. The appeal also did not change the course of the judgement, as the Tribunal re-affirmed the decision the Commission had formerly reached – pay the $220 billion fine, as well as other additional penalties.

    To the FCCPC, Meta’s threat to exit Nigeria came across as blackmail to force the Commission to cave or to somewhat reduce the fine. The regulatory commission pointed out that Meta was recently fined for privacy violations in Texas, in the European Union (EU), as well as in India and South Korea, but the social media giant never made use of threat or blackmail to leave the aforementioned countries. Instead, they obeyed.  

    The Commission, in their recent press release, says, “The recent affirmation of FCCPC’s final order by the Competition and Consumer Protection Tribunal requires Meta parties to take steps to comply with Nigerian law, stop exploiting Nigerian consumers, change their practices to meet Nigerian standards and respect consumer rights, consistent with international best practices.”

    “Threatening to leave Nigeria does not absolve Meta of liabilities for the outcome of a judicial process,” it added.

    For Meta, they may, however, seem justified to stop operating in their 10th largest market that boasts of over 51 million Nigerian Whatsapp users. The company, calling the fines “unrealistic” reportedly said in court papers, “The applicant may be forced to effectively shut down the Facebook and Instagram services in Nigeria in order to mitigate the risk of enforcement measures.”

    Reports suggest that Meta’s estimated annual revenue in Nigeria is between $200 million and $300 million, meaning that the fines represent 70-110% of that revenue. As such, critics have argued that a more proportionate fine, aligned with Nigerian law and global benchmarks, would fall between $2 million and $20 million. By comparison, the European Union’s €1.2 billion fine that was imposed on Meta in 2023 for illegal data transfers was approximately 3.2% of Meta’s EU revenue.

    This inconsistency has led some Nigerians to believe the Binance situation is happening all over again with Meta, although defenders of the Commission’s final judgement still argue that the huge fines reflect the seriousness of the alleged violations and the need to establish meaningful regulatory policies.

    The outcome of this regulatory showdown, especially if Meta concedes to the FCCPC, could establish important precedents for how global tech giants operate in Africa’s market, as it may create and encourage a system where other African countries hold these companies accountable. However, if Meta follows through on its exit threat, it could have significant implications on many SMEs in the country, as they heavily rely on Meta’s chain of social media platforms to operate and carry-out their day-to-day businesses.

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    I’m Precious Amusat, Phronews’ Content Writer. I conduct in-depth research and write on the latest developments in the tech industry, including trends in big tech, startups, cybersecurity, artificial intelligence and their global impacts. When I’m off the clock, you’ll find me cheering on women’s footy, curled up with a romance novel, or binge-watching crime thrillers.

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