FG reacts to Meta’s exit threat over $200m fine

The Federal Government of Nigeria has responded to Meta Platforms Inc.’s threat to exit the country after the Federal Competition and Consumer Protection Commission (FCCPC) imposed a $220 million fine on the tech giant.

Meta, which owns WhatsApp, Facebook, and Instagram, issued the threat following the fine, which was levied for alleged violations of consumer protection and data privacy regulations.

In a statement posted on its X platform on Thursday, August 1, 2024, the FCCPC described Meta’s threat as a strategic maneuver intended to sway public opinion and pressure the commission into reconsidering its decision.

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The agency reiterated its stance that Meta had discriminated against Nigerian users and abused its dominant market position by enforcing unfair privacy policies.

The controversy began when the FCCPC fined Meta $220 million for unauthorized data appropriation without user consent and discriminatory practices against Nigerian users. In response, Meta threatened to exit the Nigerian market, even as it filed an appeal against the penalty.

The FCCPC’s statement read: “WhatsApp’s claim that it may be forced to exit Nigeria due to FCCPC’s recent order appears to be a strategic move aimed at influencing public opinion and potentially pressuring the FCCPC to reconsider its decision.”

The agency detailed its investigation into Meta Platforms and WhatsApp, collectively referred to as “Meta Parties,” for alleged violations of the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR). The FCCPC found that Meta engaged in repeated infringements, including denying Nigerians control over their personal data, unauthorized data transfers, and discriminatory practices against Nigerian users compared to other regions.

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The company was also accused of abusing its market dominance by imposing unfair privacy policies.

The FCCPC’s final order requires Meta to comply with Nigerian laws, cease exploiting Nigerian consumers, and adjust its practices to meet local standards while respecting consumer rights. The $220 million fine aims to deter future violations and ensure accountability.

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“The FCCPC’s actions are based on legitimate concerns about consumer protection and data privacy,” the statement continued. “This order is a positive step towards a fairer digital market in Nigeria.

Similar measures are taken in other jurisdictions without forcing companies to leave the market. The case of Nigeria will not be different.”

The FCCPC emphasized that its decision is rooted in protecting Nigerian consumers and upholding the integrity of the digital marketplace.