Tech giant Meta, the parent company of social media platforms Facebook and Instagram, has issued a strong threat to potentially cease its operations in Nigeria. This development comes amidst a series of substantial fines imposed by Nigerian regulatory bodies, totaling over $290 million (£218 million), for alleged breaches of competition, advertising, and data protection laws.
According to court documents seen by the BBC, Meta warned that it might be compelled to shut down its popular platforms in Nigeria – specifically Facebook and Instagram – “to mitigate the risk of enforcement measures” following unsuccessful attempts to overturn these sanctions in the Federal High Court in Abuja. The fines were levied by three key Nigerian oversight agencies: the Federal Competition and Consumer Protection Commission (FCCPC), the Advertising Regulatory Council of Nigeria (ARCON), and the Nigerian Data Protection Commission (NDPC).
The FCCPC, in a robust response issued on Saturday, dismissed Meta’s threat as a calculated tactic aimed at inciting public backlash and pressuring the commission to reverse its stance. The regulatory body affirmed that Meta and its messaging platform WhatsApp are currently under investigation for alleged violations of the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).
Ondaje Ijagwu, the Director of Corporate Affairs at the FCCPC, stated that Meta’s potential departure would not absolve the company of its incurred liabilities. He pointed out that Meta has faced similar penalties in other regions, including the European Union, the United States, India, South Korea, France, and Australia, without resorting to threats of market withdrawal.
The FCCPC’s investigation concluded that Meta engaged in multiple and repeated infringements of Nigerian laws. These alleged violations include denying Nigerian users control over their personal data, transferring user data without proper authorization, and implementing discriminatory privacy practices compared to users in other countries. The commission also accused Meta of abusing its dominant market position by enforcing unfair privacy policies.
The recent affirmation of the FCCPC’s final order by the Competition and Consumer Protection Tribunal mandates that Meta take immediate steps to comply with Nigerian law. This includes ceasing exploitative practices against Nigerian consumers, aligning its operational standards with Nigerian regulations, and respecting consumer rights in accordance with international best practices.
Meta’s threat has ignited concerns, particularly among Nigerian entrepreneurs and small business owners who heavily rely on Facebook and Instagram for advertising, customer engagement, and sales. The potential absence of these platforms could significantly disrupt their operations and impact the digital economy in Nigeria.
While the financial impact of the $290 million fine might appear relatively minor for a global giant like Meta, which boasts a market capitalization of over $1.5 trillion, its decision to threaten a market exit underscores the growing tension between multinational technology corporations and national governments asserting their regulatory authority in the digital space.
The Nigerian government, through the FCCPC, appears resolute in its stance, emphasizing its commitment to protecting Nigerian consumers and ensuring a fairer digital marketplace. The commission has called on Meta to comply with the tribunal’s order and adjust its practices in Nigeria, rather than resorting to what it perceives as an ultimatum. The unfolding situation will be closely watched for its implications on digital regulation and the operations of major tech companies in emerging markets.
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