The Advertising Regulatory Council of Nigeria (ARCON) has withdrawn its lawsuit against parent company of Facebook Instagram and WhatsApp; Meta Platforms Incorporated.
In another twist, the Federal Competition and Consumer Protection Commission (FCCPC) slammed a $220 million fine against the company for violations of local consumer protection and data privacy laws.
Noteworthy, ARCON filled a notice of discontinuance before Justice Peter Lifu of the Federal High Court in Abuja.
The legal battle which began on September 23, 2022, with ARCON filing Suit FHC/ABJ/CS/1701/2022 against Meta Platforms Incorporated and AT3 Resources Limited as party was initially presided over by Justice A.M. Mohammed before it was later transferred to Justice Peter Lifu in 2023 following Mohammed’s retirement.
However, Dr. Adamu Abdullahi, Acting Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC), on Friday explained that Meta’s conduct constituted an abuse of its market dominance and involved discriminatory practices against Nigerian users compared to other regions with similar regulations.
“Meta appropriated the data of Nigerian users on its platforms without their consent, abused its market dominance, and meted out discriminatory and disparate treatment on Nigerians, compared with other jurisdictions with similar regulations.” Dr. Abdullahi stated.
Meanwhile, the roots of ARCON’s legal tussle with Meta can be traced back to when the House of Representatives passed a resolution directing ARCON to implement measures controlling advertisements on social media platforms. According to sources, ARCON’s subsequent outreach to various platforms reportedly met with resistance from Meta, prompting the initial legal action.
However, Dr. Olalekan Fadolapo, Director General of ARCON on the regulatory council’s decision said: “This withdrawal is not a retreat, but a tactical redeployment. Since October 13, 2022, when the writ was filed, we’ve observed continuous violations of the Nigerian advertising code by Meta and its subsidiaries. The lack of progress in bringing the case to trial over the past two years has necessitated a reevaluation of our strategy.
“Management is doing this to ensure that all social media platforms are operating within the ambit of the law,” he concluded.
Barrister Oloyede Lateef, a legal expert with bias in media and advertising law, explained the significance of ARCON’s move. “There’s a crucial tactical difference between a case being dismissed and one being struck out. A dismissed case is essentially dead and cannot be revived. However, a struck out case, which is what we have here, can always be brought up again. This gives ARCON the flexibility to reintroduce the case in the future if necessary,” he explained.