Nigeria’s competition watchdog has slapped a $220 million fine on Meta Platforms Inc. for violating consumer and data protection laws. This fine follows a comprehensive investigation into the social media giant’s data-sharing practices.
Investigations and Findings
The Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria conducted the investigation over 38 months in collaboration with the Data Protection Commission. The probe revealed that Meta, the parent company of Facebook, Instagram, and WhatsApp, had been using Nigerian users’ data without their consent. The FCCPC found that Meta imposed exploitative privacy policies on its users, leveraging its market dominance to enforce these policies.
FCCPC chief Adamu Abdullahi stated, “Meta’s policies do not provide users the option to self-determine or withhold consent for the gathering, use, and sharing of personal data.” The investigation concluded that Meta engaged in repeated and invasive data practices, particularly against Nigerian users.
Despite Meta’s provision of some documents and retention of legal counsel to engage with the FCCPC, the Commission determined that the evidence was sufficient to issue the penalty. Abdullahi emphasized that Meta had ample opportunity to defend its practices but failed to do so satisfactorily. Consequently, the Commission issued a final order mandating Meta to comply with local laws.
Global Context and Ongoing Issues
This fine is not an isolated incident for Meta. In May, Turkey’s competition board fined Meta 1.2 billion lira for similar data-sharing violations on its platforms. Additionally, Meta has faced significant pushback in Europe and other regions over alleged breaches of data protection laws. In Europe, Meta’s plans to use personal data to train its artificial intelligence models without obtaining user consent have sparked controversy.
Meanwhile, South Africa’s competition watchdog has announced plans to investigate whether digital platforms like Meta unfairly compete with news publishers by using their content to generate ad revenue. This growing scrutiny highlights the global challenges Meta faces regarding its data practices and regulatory compliance.
Meta’s Response and Future Steps
Meta has yet to comment on the Nigerian fine. However, the company’s engagement with the FCCPC through legal counsel suggests that it is taking the matter seriously. The final order from the FCCPC outlines specific steps Meta must take to align with Nigerian laws, although the details of these requirements have not been disclosed.
The substantial fine and the global regulatory scrutiny underscore the importance of robust data protection practices and compliance with local laws for multinational tech companies. As regulatory bodies worldwide tighten their oversight, companies like Meta must navigate an increasingly complex legal landscape.
This development in Nigeria could set a precedent for other countries in Africa and beyond, potentially leading to more stringent regulations and penalties for data privacy violations. Meta’s ability to address these challenges will be crucial in maintaining its global operations and reputation.
Source: Reuters
