Latest news with #NigeriaDataProtectionRegulation
Daily Maverick
2 days ago
- Business
- Daily Maverick
Nigeria slaps Meta with $290m in fines for invasive practices
Found guilty of data sharing and other invasive practices, the parent company of Facebook, WhatsApp and Instagram was issued with a $290-million penalty. Meta, the parent company of Facebook, Instagram and WhatsApp, was recently hit with three fines totalling more than $290-million in Nigeria. The fines were imposed by Nigeria's Federal Competition and Consumer Protection Commission, the Nigerian Data Protection Commission and the Advertising Regulatory Council of Nigeria. Meta was accused of invasive practices against data subjects and consumers in Nigeria. The company denied the allegations and has challenged the fines in court. What are the violations for which Meta has been fined? The trouble began on 4 January 2021 when WhatsApp updated its privacy policy to introduce mandatory data-sharing with Facebook (now Meta) and its subsidiaries. The main change allowed WhatsApp to share user business interaction data with Facebook for marketing and advertising purposes. The updated policy did not include an opt-out provision. It was a 'take it or leave it' policy. In other words, if users did not consent to the updated terms, they would no longer be able to use WhatsApp. This triggered a Federal Competition and Consumer Protection Commission investigation into Meta, conducted jointly with the Nigeria Data Protection Commission. The probe was conducted from May 2021 to December 2023. Meta has allegedly not complied with the Nigeria Data Protection Commission, and failed to appoint a Data Protection Compliance Organisation. That's an entity licensed to assist data controllers and processors in achieving compliance with Nigeria's data protection regulations. It has not submitted its mandatory Nigeria Data Protection Regulation reports for two consecutive years. Nigeria is the most populous country on the continent, with about 236 million people. It has about 107 million internet users. The most used social media platforms at the end of 2024 were WhatsApp, Facebook, TikTok, Instagram and Telegram. Meta owns WhatsApp, Facebook and Instagram and has threatened to pull Facebook and Instagram services from the country. The Federal Competition and Consumer Protection Commission has said quitting Nigeria won't absolve Meta of its liability. Facebook has about 51.2 million users in Nigeria, while Instagram has about 12.6 million. What have regulators found against Meta? The investigation uncovered several violations. These included: Unauthorised data sharing: Meta was found to have shared Nigerian users' personal data without their consent. This included cross-border transfers and storage, violating the Nigeria Data Protection Commission and the Federal Competition and Consumer Protection Act. Discriminatory practices: Meta allegedly treated Nigerian users differently from those in other jurisdictions with similar regulations. Meta offers stronger privacy protections in the European Union because of the General Data Protection Regulation. Nigerian regulators have highlighted this double standard. Denial of data self-determination: The company was accused of denying Nigerian users the right to control how their data is used, compelling them to accept exploitative privacy policies. Abuse of market dominance: The Federal Competition and Consumer Protection Commission said the company abused its dominant market position to enforce unfair privacy policies. Tying and bundling: Meta was found to have engaged in tying and bundling practices, which are considered anti-competitive. Tying occurs when a company requires customers to buy a secondary product or service as a condition of buying a primary product or service. For example, if Meta required users to accept Facebook's terms and automatically enrol in WhatsApp or Instagram services (or allow data sharing across them) to use Facebook, then that could be considered tying. This is because it can limit consumer choice, stifle competition and force people to accept products or terms they don't want. Bundling occurs when a company sells multiple products or services together as a package, or makes it difficult to buy them separately. For example, Meta might bundle multiple services such as Facebook, Instagram and Messenger in such a way that users must accept a single privacy policy that covers all, even if they only use one service. This can shut out smaller competitors and prevent users from choosing alternatives. After remediation efforts failed, the Federal Competition and Consumer Protection Commission issued its final order in July 2024. It imposed a $220-million fine along with penalties from other agencies, bringing the total to $290-million. In addition to the fine, the commission has ordered Meta to comply with Nigerian laws and cease practices it described as the 'exploitation' of Nigerian consumers. After completing its inquiry, the agency shared its findings with Meta. The company proposed a 'remedy package'. But the commission rejected this as inadequate. What made Meta vulnerable to such fines? Meta has failed to localise its data practices. It appears dismissive of Nigerian sovereignty and regulatory authority. For example, Meta has been transferring Nigerian users' data overseas without protecting them as required by Nigeria. Meta's annual revenue in Nigeria is between $200-million and $300-million. But many Nigerians in the diaspora use Facebook and Instagram to communicate with people inside the country. Revenue from those users is likely to raise the figure considerably. The company has faced similar sanctions for data violations worldwide, including a $1.4-billion fine in Texas and a $1.3-billion fine in Europe. It has also been penalised in India, South Korea and Australia. What are the implications of the fines? Meta now faces heightened scrutiny from Nigerian regulators. It will have to adhere to local data protection and consumer rights laws. This includes appointing a Data Protection Compliance Organisation and submitting audit reports as stipulated by the Nigerian Data Protection Regulation. The fines and regulatory measures may also compel Meta to reassess its operations in Nigeria. It might adjust its services to align with local laws. Meta has also been ordered by the courts to reimburse the Federal Competition and Consumer Protection Commission $35,000 for the cost of the investigation. And it has been told to take the following measures: Reinstate the rights of Nigerian users to determine the control and use of their data without losing functionality or deleting the application; Set its privacy policy to comply with data protection laws in Nigeria; Stop sharing WhatsApp users' information with other Facebook companies and third parties until users have actively consented to this; Revert to the data sharing practices adopted in 2016, including establishing an opt-in screen; Terminate the tying and transfer of data without consent; and Add a visible link on its platforms for Nigerian users, leading to educational content about the risks of manipulative and unfair data practices. These videos will be developed in collaboration with approved NGOs and academic institutions. Other social media entities operating in Nigeria will be watching closely to see what is required. How dependent is Nigeria on these social media platforms? Many Nigerian businesses and entrepreneurs use Facebook and Instagram for marketing, customer engagement and sales. The platforms offer cost-effective advertising and direct communication channels with many customers. These platforms also provide valuable analytics on customer behaviour, content performance and demographics. Businesses use these services to refine their marketing strategies and make data-driven decisions. Content creators in Nigeria use Facebook and Instagram to build audiences, monetise content and collaborate with brands. The African creator industry, valued at £2.4-billion in 2024, is expected to continue to grow significantly. The music genre Afrobeats has also gained popularity across Nigeria and globally with the assistance of these platforms. Nigeria's ecosystem of homegrown and African social media platforms is growing, offering local alternatives to global giants such as Facebook and Instagram. While none match their scale, platforms including Crowwe, ChatAfrik and Nairaland are making strides in content sharing, chat, forums and business promotion. The information and communications technology sector contributed about 20% to Nigeria's real gross domestic product in the second quarter of 2024. The rapid expansion of the digital technology industry in recent years highlights its strong potential to stimulate economic growth. Nigeria's digital economy has also seen significant growth because of increased internet access and mobile usage. DM First published by The Conversation. Tolu Olarewaju is an economist and lecturer in management at Keele University. Jagannadha Pawan Tamvada is a professor of entrepreneurship at Kingston University.
Yahoo
23-05-2025
- Business
- Yahoo
Why Meta is in trouble in Nigeria and what this means for Facebook, Instagram and WhatsApp users
Meta, the parent company of Facebook, Instagram and WhatsApp, was recently hit with three fines totalling more than US$290 million in Nigeria. The fines were imposed by Nigeria's Federal Competition and Consumer Protection Commission, Nigerian Data Protection Commission and the Advertising Regulatory Council of Nigeria. Meta was accused of invasive practices against data subjects and consumers in Nigeria. The company denied the allegations and has challenged the fines in court. Entrepreneurship and international business researcher Tolu Olarewaju and professor of entrepreneurship Jagannadha Pawan Tamvada explain the implications of the fines. The trouble began on 4 January 2021 when WhatsApp updated its privacy policy to introduce mandatory data-sharing with Facebook (now Meta) and its subsidiaries. The main change allowed WhatsApp to share user business interaction data with Facebook for marketing and advertising purposes. The updated policy did not include an opt-out provision. It was a 'take it or leave it' policy. In other words, if users did not consent to the updated terms, they would no longer be able to use WhatsApp. This triggered a Federal Competition and Consumer Protection Commission investigation into Meta, conducted jointly with the Nigeria Data Protection Commission. The probe was conducted from May 2021 to December 2023. Meta has allegedly not complied with the Nigeria Data Protection Commission, and failed to appoint a Data Protection Compliance Organisation. That's an entity licensed to assist data controllers and processors in achieving compliance with Nigeria's data protection regulations. And it has not submitted its mandatory Nigeria Data Protection Regulation reports for two consecutive years. Nigeria is the most populous country on the continent, with about 236 million people. It has about 107 million active internet users. The most used social media platforms at the end of 2024 were WhatsApp, Facebook, TikTok, Instagram and Telegram. Meta owns WhatsApp, Facebook and Instagram and has threatened to pull Facebook and Instagram services from the country. The Federal Competition and Consumer Protection Commission has said quitting Nigeria won't absolve Meta of its liability. Facebook has about 51.2 million users in Nigeria, while Instagram has about 12.6 million. The investigation uncovered several violations. These included: Unauthorised data sharing: Meta was found to have shared Nigerian users' personal data without their consent. This included cross-border transfers and storage, violating the Nigeria Data Protection Commission and the Federal Competition and Consumer Protection Act. Discriminatory practices: Meta allegedly treated Nigerian users differently from those in other jurisdictions with similar regulations. Meta currently offers stronger privacy protections in the European Union due to the General Data Protection Regulation. Nigerian regulators have highlighted this double standard. Denial of data self-determination: The company was accused of denying Nigerian users the right to control how their data is used, compelling them to accept exploitative privacy policies. Abuse of market dominance: The Federal Competition and Consumer Protection Commission said the company abused its dominant market position to enforce unfair privacy policies. Tying and bundling: Meta was found to have engaged in tying and bundling practices, which are considered anti-competitive. Tying occurs when a company requires customers to buy a secondary product or service as a condition of buying a primary product or service. For example, if Meta required users to accept Facebook's terms and automatically enrol in WhatsApp or Instagram services (or allow data sharing across them) to use Facebook, then that could be considered tying. This is because it can limit consumer choice, stifle competition, and force people to accept products or terms they don't want. Bundling occurs when a company sells multiple products or services together as a package, or makes it difficult to buy them separately. For example, Meta might bundle multiple services like Facebook, Instagram and Messenger in such a way that users must accept a single privacy policy that covers all, even if they only use one service. This can shut out smaller competitors and prevent users from choosing alternatives. After remediation efforts failed, the Federal Competition and Consumer Protection Commission issued its final order in July 2024. It imposed a US$220 million fine along with penalties from other agencies, bringing the total to US$290 million. In addition to the fine, the commission has ordered Meta to comply with Nigerian laws and cease practices it described as the 'exploitation' of Nigerian consumers. After completing its inquiry, the agency shared its findings with Meta. The company proposed a 'remedy package'. But the commission rejected this as inadequate. Meta has failed to localise its data practices. It appears dismissive of Nigerian sovereignty and regulatory authority. For example, Meta has been transferring Nigerian users' data overseas without protecting them as required by Nigeria. Meta's estimated annual revenue in Nigeria is between US$200 million and US$300 million. However, many Nigerians in the diaspora use Facebook and Instagram to communicate with people inside the country. Revenue from those users is likely to raise the figure considerably. The company has faced similar sanctions for data violations worldwide, including a US$1.4 billion fine in Texas and a US$1.3 billion fine in Europe. It has also been penalised in India, South Korea and Australia. Meta now faces heightened scrutiny from Nigerian regulators. It will have to adhere more strictly to local data protection and consumer rights laws. This includes appointing a Data Protection Compliance Organisation and submitting mandatory audit reports as stipulated by the Nigerian Data Protection Regulation. The three fines and regulatory measures may also compel Meta to reassess its operations in Nigeria. It might adjust its services to align with local laws. Meta has also been ordered, by the courts, to reimburse the Federal Competition and Consumer Protection Commission US$35,000 for the cost of the investigation. And it has been told to take the following measures: reinstate the rights of Nigerian users to determine the control and use of their data without losing functionality or deleting the application set its privacy policy to comply with data protection laws in Nigeria stop sharing WhatsApp users' information with other Facebook companies and third parties until users have actively consented revert to the data sharing practices adopted in 2016, including establishing an opt-in screen terminate the tying and transfer of data without consent add a visible link on its platforms for Nigerian users, leading to educational content about the risks of manipulative and unfair data practices. These videos will be developed in collaboration with approved NGOs and academic institutions. Other social media entities operating in Nigeria will be watching closely to see what's required. Many Nigerian businesses and entrepreneurs use Facebook and Instagram for marketing, customer engagement and sales. The platforms offer cost-effective advertising and direct communication channels with customers. These platforms also provide valuable analytics on customer behaviour, content performance and demographics. Businesses use these services to refine their marketing strategies and make data-driven decisions. Content creators in Nigeria use Facebook and Instagram to build audiences, monetise content and collaborate with brands. The African creator industry, valued at £2.4 billion in 2024, is expected to grow significantly. Afrobeats has also gained popularity across Nigeria and globally with the assistance of these platforms. Nigeria's ecosystem of homegrown and African social media platforms is growing, offering local alternatives to global giants like Facebook and Instagram. While none match their scale, platforms like Crowwe, ChatAfrik and Nairaland are making strides in content sharing, chat, forums and business promotion. The information and communications technology sector contributed about 20% to Nigeria's real gross domestic product in the second quarter of 2024. The rapid expansion of the digital technology industry in recent years highlights its strong potential to stimulate economic growth. Nigeria's digital economy has also seen significant growth due to increased internet access and mobile usage. This article is republished from The Conversation, a nonprofit, independent news organization bringing you facts and trustworthy analysis to help you make sense of our complex world. It was written by: Tolu Olarewaju, Keele University and Jagannadha Pawan Tamvada, Kingston University Read more: How pro-Europe, pro-US Poland offers the EU a model for how to handle Trump From prototype to construction site: how innovative smart materials make it out of the lab and into our cities What's the obscure Australian online safety standard Elon Musk's X is trying to dodge in court? An expert explains The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.
Business Mayor
18-05-2025
- Business
- Business Mayor
Nigerians seek homegrown social media platforms amid Meta's possible exit
Following Meta Platforms Inc.'s warning that it may cease operations in Nigeria, social media users across the country have called for the development of indigenous networking platforms. Meta, the parent company of Facebook, Instagram, and WhatsApp, threatened to shut down its Facebook and Instagram services in Nigeria after a tribunal upheld a \$220 million fine against the company last year. In separate interviews with the News Agency of Nigeria (NAN) on Sunday, users said establishing homegrown platforms would make regulation and data protection easier to enforce in the country. Mr. Moses Atuegwu, a WhatsApp user, described Meta's exit threat as 'uncalled for' considering the large Nigerian user base. He added, 'We cannot continue to be controlled by these foreign platforms. We should have an alternative that is indigenous based.' Ms. Pearl Adekunle, a user of WhatsApp and Instagram, said homegrown platforms would allow Nigeria to better scrutinise online content and boost local technology and the economy. She noted, 'China and Russia have their own indigenous social media platforms, and this enhances the data protection policy of their governments. Nothing stops Nigeria from adopting the same to promote and advance indigenous technologies.' Esther Indiana-Obong, a Facebook subscriber, said that creating indigenous platforms would foster competition and innovation in Nigeria's IT sector while reducing dependence on foreign brands. Alhaji Aminu Zakari, also a social media user, pointed out that a local platform would help the government regulate social media more effectively. Meta's threat followed the Federal Competition and Consumer Protection Tribunal's decision in July 2024 to uphold a $220 million fine against Meta Platforms Inc. and WhatsApp LLC for violating the Federal Competition and Consumer Protection Act (FCCPA) and Nigeria Data Protection Regulation (NDPR). The tribunal also ordered Meta to pay $35,000 as investigation costs. According to the Federal Competition and Consumer Protection Commission (FCCPC), Meta's violations include denying Nigerians control over their personal data, transferring user data without authorisation, discriminating against Nigerian users compared to those in other regions, and abusing its dominant market position through unfair privacy policies. The FCCPC described Meta's exit threat as a calculated move to induce public pressure on the commission.
BBC News
04-05-2025
- Business
- BBC News
Weda Meta comot or not, dem gatz realise wetin dem do - Nigeria goment tell operators of WhatsApp, Facebook, Instagram
Di Federal Competition and Consumer Protection Commission don draw ear give Meta say dia threat no hold water becos dem go still owe gbese. Dem tok dis one for statement wey di FCCPC director of Corporate Affairs, Ondaje Ijagwu bring come outside on Saturday. "WhatsApp claim say dem fit dey forced to comot Nigeria sake if di FCCPC recent order be like na calculated move wey dem do to cause negative public reaction wey dem tink fit make FCCPC to reconsider dia decision", Ijagwu tok. E add say, "to threaten to comot Nigeria no mean say Meta no owe di liabilities wey be say di result of judicial process put for dia head". According to wetin di company tok for court papers, dem say, "di applicant fit dey forced to shutdown Facebook and Instagram for Nigeria so dem go fit reduce di risk wey go come if dem no comply" but dem no tok anytin about WhatsApp for dat statement. Di FCCPC drop lowdown of wetin dem bin dey accuse Meta for. Dem claim say Meta violate di Federal Competition and Consumer Protection Act (FCCPA) and di Nigeria Data Protection Regulation (NDPR). Di accuse be say Meta "deny Nigerians di right to control dia personal data, dey share Nigerian user data witout permission, discriminate against Nigeria users compared to users for oda places and abuse dia dominant market position by say dem force unfair practices". Dem add say, di Competition and Consumer Protection Tribunal na im stamp di FCCPC final order say dem want make "Meta Parties to do wetin Nigeria law tok, stop to dey exploit Nigeria consumers, change dia practices to meet Nigerian standards and respect consumer rights, wey go look like wetin be international best practices." Wetin be di fines wey FCCPC dey ask for For di weekend statement, FCCPC claim say " Meta bin dey fined for similar breaches for Texas for $1.5bn and recently dem ask dem to pay $1.3bn say dem violate di EU Data Privacy Rule. Dem aslo face penalties for similar breaches for India, South Korea, France and Australia". All dis na to torchlight di fact say, na just Nigeria Meta det blackmail say dem wan comot. Wetin start dis whole kasala against Meta? Na for 2020, dis mata start as di FCCPC begin 38 month collabo investigation wit di Nigeria Data Protection Commission (NDPC). Di investigation torchlight di conduct, privacy practices, and consumer data policies of Meta Platforms and WhatsApp. For 19 July, 2024, di FCCPC come issue final offer wey sama $220 million administrative penalty ontop Meta head say dem bin dey run discriminatory and exploitative practices against Nigerian consumers. As Meta no come like di Order, Meta and WhatsApp carry di FCCPC go di Competition and Consumer Protection Tribunal as dem bin make di final arguments by 28 January, 2025 but no be till 25 April, 2025, na im di Tribunal come drop dia ruling. Di Tribunal release dia judgement on di case say mostly on di side of di commission for di seven issues Meta bin bring bifor di court. Dem even add on top di $220m administrative penalty say Meta Platforms Incorporated and WhatsApp LLC go pay $35,000 to di FCCPC as cost of di investigation. Di three member panel of di Tribunal wey Honorable Thomas Okosun lead, while dem judge most di case in di Commission favour bin set aside Order 7 of di Commission Final Order say e no get legal basis.
