Nigeria imposes $220 million fine on Meta for data and privacy violations

  • Nigeria fines Meta $220 million for violating local consumer, data protection, and privacy laws.
  • Strategic policy and management improvements are crucial for Meta to restore its reputation.

OUR TAKE
The penalty will significantly damage Meta’s reputation. To recover, Meta should not only address the immediate issues but also strategically enhance its global data protection and compliance management, ensuring more stable and compliant business operations in the future.

— Yasmine Luo, BTW reporter

What happened?

Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has fined Meta Platforms $220 million after finding that Meta violated local consumer, data protection, and privacy laws.

“The totality of the investigation has concluded that Meta over the protracted period of time has engaged in conduct that constituted multiple and repeated, as well as continuing infringements… particularly, but not limited to abusive, and invasive practices against data subjects in Nigeria,” Abdullahi, FCCPC chief, said.

The FCCPC’s 38-month investigation revealed that Meta misused Nigerian user data, enforced unfair privacy policies, and treated Nigerian users differently from those in other regions. Meta’s policies were found to deny users the ability to control their personal data.

The penalty requires Meta to comply with Nigerian laws. This fine follows similar actions against Meta in Turkey and scrutiny in Europe over data protection practices and AI training. South Africa is also planning an investigation into how digital platforms, including Meta, compete with news publishers.

Meta did not immediately comment.

Also read: Meta pauses EU AI model rollout amid regulatory concerns

Also read: Brazil orders Meta to stop training its AI on personal data

Why it’s important

The penalty imposed on Meta by Nigeria not only directly impacts its operations in the country but also has the potential to trigger global repercussions.

As a globally renowned tech company, Meta’s brand image is built on user trust. Being penalised for violating data protection laws has caused consumers to question Meta’s privacy protection measures, affecting its user loyalty and market share in Nigeria and other regions.

To prevent similar incidents in the future, Meta may need to make significant adjustments to its data processing and privacy policies across all markets. The Nigerian penalty might attract the attention of regulatory bodies worldwide, leading to stricter global regulatory scrutiny. Other countries may follow Nigeria’s lead, further strengthening the regulation of data protection and privacy policies for Meta and other tech companies.

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