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FCCPC Dismisses Meta’s Market Withdrawal Threat Over Consumer Protection Penalties

Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has dismissed WhatsApp’s threat to withdraw from the Nigerian market following a recent commission order. In a Saturday statement from FCCPC’s Abuja office, Director of Corporate Affairs Ondaje Ijagwu declared that the threat would not shield Meta Platforms (the parent company of WhatsApp) from legal consequences.

Ijagwu characterized WhatsApp’s threat as a calculated attempt to provoke negative public sentiment and pressure the FCCPC to reverse its decision. He emphasized that the Competition and Consumer Protection Tribunal’s recent upholding of the FCCPC’s final order mandates Meta to cease exploitative practices targeting Nigerian consumers and align its operations with Nigerian and international best practices.

The tribunal levied a $220 million administrative penalty against Meta Platforms Incorporated and WhatsApp LLC for their violations. This followed an investigation into multiple alleged breaches of the Federal Competition and Consumer Protection Act (FCCPA) of 2018 and the Nigeria Data Protection Regulation (NDPR). The tribunal also awarded the FCCPC $35,000 in investigative costs.

The FCCPC’s investigation revealed that Meta engaged in repeated infractions, including: denying Nigerians control over their personal data; unauthorized transfer and sharing of Nigerian user data; discriminatory treatment of Nigerian users compared to users elsewhere; and abuse of market dominance through unfair privacy policies.

Ijagwu noted Meta’s history of similar penalties, citing a $1.5 billion fine in Texas and a recent $1.3 billion penalty for violating European Union data privacy rules. He also highlighted fines imposed on Meta in India, South Korea, France, and Australia for comparable offenses. Ijagwu pointed out that in those instances, Meta complied with regulations instead of resorting to threats of market withdrawal.

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The FCCPC director reaffirmed the commission’s commitment to protecting consumers and safeguarding data privacy, aiming to create a more equitable digital marketplace within Nigeria.

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