Professionals warn ARCON of potential overregulation over Meta, AT3 suit
By Zion Rufus
Advertising and digital marketing professionals have raised concerns over potential overregulation in the wake of Advertising Regulatory Council of Nigeria’s (ARCON) N30 billion lawsuit against Meta and AT3 Resources Limited.
While acknowledging the need for oversight, they emphasized the importance of striking a balance that promotes responsible advertising practices while allowing businesses to thrive, arguing that excessive regulation may stifle and hinder innovation in the advertising industry.
It should be recalled that the Federal High Court in FCT, Abuja had granted ARCON the permission to serve writs of summons and other court processes, including hearing notices to Meta at its corporate headquarters in the USA. In the suit against the Facebook, Instagram, and WhatsApp owner, ARCON had cited violations of Nigeria’s advertising laws.
“Of course, I am not sure what ARCON is regulating here after it allowed those political adverts to corrode the airwaves. It must not increase the cost of business. And it must not also slow business by forcing these companies to mandate Nigeria companies to get ARCON approval before business messages are published,” Ndubuisi Ekekwe, a renowned professor, inventor, and entrepreneur said in a LinkedIn post.
“Google is regulating lending apps. Now Facebook and Instagram are to regulate adverts for Nigeria. How do you win those battles against ICT utilities?,” he quipped.
For Prisca Edoremin, a digital marketing consultant, It remains to be seen how the legal battle will unfold, and whether ARCON’s claims against Meta Platform will be upheld.
She said: “This lawsuit raises important questions about the regulation of online advertising in Nigeria and highlights the ongoing tension between ensuring compliance with local laws and preserving a favorable business environment for digital marketing professionals and platforms alike.”
Speaking on the condition of anonymity, another marketing professional suggested that instead of imposing fines and sanctions, it would be more effective to engage Meta in dialogue to address the concerns raised by ARCON.
The professional advocated for collaborative efforts between regulatory bodies and industry players to develop guidelines and standards that consider both regulatory requirements and the evolving digital landscape.
In his comments, Francis Ogaju, a global business advisor stated that “If ARCON wants a cut from Meta ads revenue, it should be a direct negotiation, without being a hindrance to entities that buy ads on Facebook.”
On his part, Ndubuisi Anaele, a brands consultant commended ARCON for taking steps to ensure that advertising in Nigeria is ethical and in compliance with regulations.
“I think it’s important for businesses to be aware of these regulations so that they can create advertising campaigns that are both effective and responsible. It’s also reassuring to know that there is a regulatory body in place to monitor and enforce these rules,” he said in a LinkedIn comment.
Lending credence to Anaele’s position, Athanasius Asiegbu, a marketing executive buttressed the role of regulations in preventing abuse of operations and procedures, and ensuring survival of a nation’s economic sovereignty.
“Especially in cases like this one, from external corporations and interest,” he said, adding that when regulations are objective, they enforce order and peaceful coexistence amongst players.
“Furthermore, nations must have the capacity to control activities of both internal and external actors within its territory. In fact, the ability to successfully do so has both economic and political benefits for such a country. Unfortunately, for reasons still in debate, government regulation institutions in Nigeria drive campaigns that do not necessarily pursue objective regulations, but calumny, bias and in some cases, outright sabotage. If it serves their purpose, they look the other way!
I hope this move by ARCON is not another show of brute power. Hoping to get the details and implications.”
ARCON’s lawsuit alleges that Meta Platform, as the first defendant, has unlawfully published and exposed various advertisements and marketing communications materials in Nigeria without prior vetting and approval by the Advertising Standards Panel (ASP). The regulatory body argues that this disregard for Nigerian culture, constitutional tenets, moral values, and religious sensitivities violates advertising laws in Nigeria.
The second defendant in the suit is AT3 Resources Limited. ARCON is seeking, among other things, a declaration from the court that the actions of both defendants are illegal and unlawful. They are also requesting a perpetual injunction restraining Meta and its associates from publishing or exposing any advertisements or marketing communications materials targeted at the Nigerian market without first submitting them to ARCON for vetting and approval.
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