HomeFeaturesFG, Meta to settle $32.8 million data privacy sanction out of court

FG, Meta to settle $32.8 million data privacy sanction out of court

The Federal Government and Meta Platforms Inc. — the parent company of Facebook and Instagram — have agreed to settle out of court over a $32.8 million fine imposed on the tech giant for alleged data privacy breaches involving Nigerian users.

 

Lawyers for both parties disclosed the development on Thursday before Justice James Omotosho of the Federal High Court in Abuja.

The Nigeria Data Protection Commission (NDPC) had in February fined Meta $32.8 million for allegedly violating Nigeria’s Data Protection Act. The commission accused the company of using Nigerians’ personal data for behavioural advertising without their consent, failing to submit its 2022 compliance audit, transferring data abroad without approval, and processing the personal information of non-users.

NDPC said its action followed a petition by a civil society group, the Personal Data Protection Awareness Initiative, which accused Meta of targeting Nigerians with personalised ads without explicit consent.

 

Unhappy with the sanction, Meta sued the NDPC in March, alleging that it was denied a fair hearing. Its lawyer, Gbolahan Elias (SAN), asked the court to void the orders, arguing they violated the company’s right to due process under Section 36 of the Nigerian Constitution.

 

But NDPC’s lawyer, Adeola Adedipe (SAN), countered, describing Meta’s filings as defective and urging the court to dismiss the case. He argued that Meta failed to comply with judicial review rules under the Federal High Court’s Civil Procedure Rules of 2019.

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After hearing both sides in July, Justice Omotosho allowed Meta to pursue judicial review but declined to halt the NDPC’s orders. He then adjourned the matter to October 3 for a consolidated ruling on the commission’s objection and Meta’s application to amend its filings.

 

When the case resumed for ruling, Meta’s lawyer, Fred Onwuobia (SAN), informed the court that both parties had reached “an advanced stage of settlement” and had exchanged draft terms. He asked the judge to defer the ruling to avoid disrupting the discussions.

 

Mr Adedipe confirmed the progress, saying both sides were working towards presenting the agreement for adoption as a consent judgment.

 

Justice Omotosho welcomed the move and adjourned the case to October 31 for either a ruling or the adoption of the settlement terms.

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The fine against Meta was part of NDPC’s wider effort to enforce the Nigeria Data Protection Act, signed into law by President Bola Tinubu in June 2023. The commission also fined Multichoice Nigeria N766.2 million for allegedly breaching subscribers’ privacy and transferring Nigerians’ personal data across borders without authorisation.

 

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