WhatsApp announced that its parent company, Meta, will appeal the $220 million fine imposed by the Federal Competition and Consumer Protection Commission (FCCPC) for violating Nigeria’s data privacy laws. This announcement was made available to the News Agency of Nigeria (NAN) on Saturday.

The FCCPC, in a statement signed by its acting Executive Chairman, Adamu Abdullahi, accused Meta of denying Nigerian users control over their data.

In response, WhatsApp explained that in 2021, they informed users globally about how interactions with businesses would operate. Despite initial confusion, this feature has become quite popular.

“We disagree with the decision today as well as the fine and Meta will be appealing the decision,” WhatsApp stated.

“In 2021, we went to users globally to explain how talking to businesses among other things would work and while there was a lot of confusion then, it has actually proven quite popular.”

On Saturday, TechDigest reported that the FCCPC imposed the $220 million penalty on Meta Platforms Incorporated for alleged discriminatory practices against Nigerian data and consumers. This penalty follows a joint investigation by the FCCPC and the Nigeria Data Protection Commission (NDPC) into Meta’s conduct, privacy policies, and practices between May 2021 and December 2023.

The Commission concluded that Meta’s actions over this 38-month period constituted continuing infringements of the FCCPA and NDPC regulations.

The FCCPC stated that after reviewing the evidence and providing Meta with ample opportunity to present their position, representations, refutations, explanations, or defenses, it entered a final order.Fines such as this against Meta are not uncommon.

Last year, the European Data Protection Agency fined Meta a record €1.2 billion for not complying with the EU’s privacy rulebook.

The Irish Data Protection Commission stated that Meta violated the General Data Protection Regulation (GDPR) by transferring large amounts of European Facebook users’ personal data to the United States without adequately protecting them from U.S. data surveillance practices.

Amazon had previously been fined €746 million by Luxembourg, and the Irish regulator imposed four fines on Meta’s platforms—Facebook, Instagram, and WhatsApp—ranging from €225 million to €405 million between 2021 and 2023.

Over the past five years, Big Tech companies Amazon, Meta, and Google have been on the receiving end of the largest fines imposed under the European Union’s General Data Protection Regulation (GDPR) privacy laws.

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The Federal Competition and Consumer Protection Commission (FCCPC) has levied a $220 million penalty against Meta Platforms Incorporated over alleged discriminatory practices against Nigerian consumers and their data.

The announcement was made on Friday in a statement signed by Dr. Adamu Abdullahi, Acting Chief Executive Officer of the FCCPC. The penalty follows a joint investigation by the FCCPC and the Nigeria Data Protection Commission (NDPC) into Meta’s conduct, privacy policies, and practices between May 2021 and December 2023.

The investigation revealed that Meta, formerly known as Facebook Inc., and its subsidiary WhatsApp LLC, engaged in practices that allegedly violated Nigerian data laws.

In May 2021, the Commission directed Meta and WhatsApp to respond to its investigative report, which detailed these alleged violations.

According to the statement, Meta provided information in response to the investigation and engaged with FCCPC and NDPC investigators and analysts multiple times, including as recently as April 2024.

The investigation concluded that Meta had engaged in abusive and invasive practices against Nigerian consumers over a protracted period. These practices included appropriating personal data without consent, discriminatory treatment of Nigerian consumers compared to other jurisdictions, and abusing its dominant market position by imposing exploitative privacy policies.

Satisfied with the evidence, the FCCPC issued a final order imposing a $220 million fine on Meta.

The order highlighted Meta’s alleged infringements, including denying Nigerian consumers the right to self-determine, unauthorized data transfers, discriminatory practices, and abuse of dominance.

The final order mandates that Meta take steps to comply with Nigerian laws, cease exploitative practices, and ensure that future conduct meets national standards and respects consumer rights.

The monetary penalty is in accordance with the FCCPA 2018 and the Federal Competition and Consumer Protection (Administrative Penalties) Regulations 2020.

The decision by the FCCPC came just hours after the Federal High Court in Abuja struck out a N30 billion lawsuit against Meta and its agent AT3 Resources Limited.

The lawsuit, filed by the Advertising Regulatory Council of Nigeria (ARCON), alleged illegal advertising practices. Justice Peter Lifu struck out the case following a notice of discontinuance from ARCON’s lawyer.

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The Federal Competition and Consumer Protection Commission, FCCPC, has expressed concern over the growing trend of violations of its Limited Interim Regulatory/Registration Framework and Guidelines by digital lenders, commonly known as loan apps.

As a result, it said it would sanction erring online banks for customer rights violations.

In a statement released recently by its acting Executive Vice Chairman of the commission, Adamu Abdullahi, highlighted a surge in infractions as more Nigerians turn to those digital platforms for loans.

The regulator acknowledged that the increase in violations may be attributed to the rising number of defaulting customers, leading some digital lenders to resort to harassment and defamation practices in their debt recovery efforts.

The FCCPC boss noted that such actions, which breach the regulatory guidelines, were not acceptable methods for debt recovery.

“The commission understands the increased demand for loans during this time of year, leading to an increased risk of default due to large numbers and typical cash flow challenges and constraints.

“However, the solution cannot be to violate the law or utilise unethical recovery methods. As such, the commission is intensifying enforcement efforts and adopting a zero-tolerance stance towards any exploitation of consumers or abusive conduct, whether in balance calculations, loan default enforcement, or recovery processes.

“In addition, in the coming days, the Commission will be engaging approved loan apps concerning a more robust compliance framework including any additional requirements where applicable, and possible mechanisms for otherwise blacklisted apps.”

The Limited Interim Regulatory/ Registration Framework and Guidelines for Digital Lending 2022 became imperative after several reports of persistent harassment by digital lenders.

The FCCPC, under this framework, is empowered to regulate the digital lending space and make registration and approval a prerequisite for companies seeking to operate in the digital lending space following the illegal activities of some of these apps.

The FCCPC last year identified some loan sharks that were operating illegally in the country. Some of them include Naija Cash, Eagle Cash, Firstnell App, Flypay, Spark Credit, Softnaira App, Cashdey App, among others.

Currently, the number of digital lenders licensed to operate in Nigeria is 211 based on data from the FCCPC.

Of the 211 digital lenders, 172 have full approval, while 39 have conditional approvals. This is a slight increase from the 204 licensed digital lenders as of September.

Further, the FCCPC boss said it would welcome compliance by all legitimate digital lenders to promote and enhance fairness to consumers and fairness among competitors.

However, he reiterated that non-compliant operators would undergo a scrutiny process, which includes law enforcement action against such, in addition to prohibition and consequences.

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The current Acting Executive Vice Chairman/CEO of the Federal Competition and Consumer Protection Commission (FCCPC), Dr. Adamu Abdullahi, affirmed the Commission’s commitment to crafting a new regulatory framework for loan apps.

Despite the removal of former FCCPC leader Babatunde Irukera, Abdullahi, who previously served as the Head of Operations, shared during a live interview on Channels TV that he was involved in prior investigations and regulatory development.

He emphasized continuing the efforts initiated by Irukera to address the increasing indebtedness to loan apps, ensuring consumer protection.

Abdullahi highlighted collaborations with entities like CBN, Data Protection Commission, EFCC, and ICPC, aiming to create a secure environment for the operation of loan apps.

Notably, the FCCPC’s successful identification of companies behind the apps through Interim Regulation was highlighted, addressing issues of anonymity and potential harassment associated with loan app practices.

Abdullahi acknowledged the crucial role of loan apps in the economy but emphasized the need for a balanced approach to protect consumers from undue hardships during the loan repayment process.

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