In a significant blow to Meta Platforms, a Nigerian court has upheld a $220 million fine imposed on the tech giant for breaching local consumer protection, data privacy, and related laws. The ruling marks a major victory for Nigeria's competition watchdog, the Federal Competition and Consumer Protection Commission (FCCPC), which has been investigating Meta's practices since May 2021.

The FCCPC launched an inquiry into WhatsApp's updated privacy policy in 2021, which led to the discovery of discriminatory and exploitative practices against Nigerian users. According to the agency, Meta's practices in Nigeria differed from those in other countries with similar regulatory standards. The FCCPC issued a fine in July 2024, accusing Meta of engaging in unauthorized data sharing with third parties, including Facebook.

Meta appealed the decision, arguing that the fine was excessive and that the FCCPC's directives were unclear and technically unfeasible to carry out under Nigerian law. However, the Competition and Consumer Protection Tribunal dismissed Meta's appeal, ordering the company to comply with the penalty within 60 days. The tribunal also directed Meta and WhatsApp to immediately stop unauthorized data sharing and restore consent mechanisms that give users control over their data.

In addition to the fine, Meta is required to submit a compliance report to both the FCCPC and the Nigerian Data Protection Commission (NDPC) by July 1, 2025, and reimburse the FCCPC $35,000 to cover investigation expenses. The ruling sets a significant precedent for tech companies operating in Nigeria, emphasizing the importance of complying with local regulations and protecting user data.

The decision is also seen as a major win for consumer protection in Nigeria, where concerns about data privacy and exploitation have been growing in recent years. The FCCPC's efforts to hold Meta accountable for its actions demonstrate the agency's commitment to safeguarding the rights of Nigerian consumers and promoting fair competition in the market.

The implications of the ruling extend beyond Nigeria, as it highlights the need for tech companies to prioritize data privacy and consumer protection globally. With increasing scrutiny of big tech's practices, the decision serves as a reminder that companies must adapt to local regulations and prioritize user trust to avoid similar penalties in the future.

As Meta navigates this significant setback, the company will need to re-evaluate its practices in Nigeria and beyond, ensuring that it complies with local laws and regulations while prioritizing user data protection. The ruling serves as a wake-up call for the tech industry, emphasizing the importance of responsible business practices and consumer-centric approaches in the digital age.