Tribunal orders Meta, WhatsApp to pay $220 million fine for data discrimination practices

By Mofeoluwa Awe

In a landmark ruling on Friday, Nigeria’s Competition and Consumer Protection Tribunal upheld a $220 million fine imposed by the Federal Competition and Consumer Protection Commission (FCCPC) against Meta Platforms Inc. and its subsidiary, WhatsApp, over unlawful and discriminatory data practices.

The Tribunal also ordered Meta to pay an extra $35,000 to the FCCPC for investigation fees. The corporations have been given 60 days to pay the penalties.

The punishment follows the FCCPC’s lengthy examination into Meta and WhatsApp’s data privacy policies in Nigeria. The Commission accused the tech behemoths of violating Nigerian consumer rights by mishandling user data and breaking data protection rules. Despite Meta and WhatsApp’s appeal, which argued that the fine was unreasonable, the Tribunal agreed with the FCCPC, stating that the social media platforms had not adequately addressed concerns raised about their activities in the country.

The legal battle arose after WhatsApp and Meta were accused of exchanging Nigerian users’ personal information with other parties without their explicit authorisation, a violation of Nigerian data protection regulations. The FCCPC’s examination also indicated that the companies failed to provide Nigerian users with adequate control over how their data was shared.

The Tribunal’s judgement came after hearing final arguments from both parties’ legal terms, with Meta’s lawyers claiming that the punishment should be revered due to procedural flaws and ambiguous orders. However, the Tribunal dismissed these arguments, saying that the FCCPC was acting within its authority to safeguard Nigerian consumers.

As part of the decision, the Tribunal ordered Meta to stop sharing Nigerian users’ data with Facebook and other third-party corporations without their explicit authorization. Furthermore, Meta was directed to revert to its 2016 data-sharing policy and give Nigerian users discretion over how their data is used and shared, with compliance due by July 1, 2025.

The Tribunal further emphasized that the FCCPC’s actions were not punitive, but rather intended to address Meta’s alleged discriminatory behavior.

In a statement, the Tribunal confirmed that WhatsApp and Meta were given adequate time to respond to the findings before the penalty was levied, ensuring a fair hearing.

The sentence issued by the Tribunal is part of Nigeria’s larger push to enhance its data protection rules and hold multinational internet corporations accountable for activities that affect local consumers. The decision also comes amid growing global worries about privacy abuses and data misuse by Big Tech companies.

Meta and WhatsApp are now under intense pressure to reform their data practices in Nigeria, establishing a precedent for how digital platforms would need to adjust to local regulations in the future.