Meta Platforms Inc. has sought an out-of-court settlement with the Nigeria Data Protection Commission (NPDC) over the US$32.8 million fine levied against it by the Nigerian regulatory agency.
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On Friday, Meta Platforms Inc., the parent company of Facebook reached an agreement with the regulator to settle the dispute out of court after filing a lawsuit challenging the fine and a series of compliance orders for alleged data privacy violations involving Nigerian users.
The fine against Meta was imposed under the Nigeria Data Protection Act, signed into law by President Bola Tinubu in June 2023, as part of measures to strengthen the protection of Nigerians’ personal data.
NDPC said it received a petition from a civil society group, the Personal Data Protection Awareness Initiative (PDPAI), which alleged that Meta engaged in behavioural advertising on Facebook and Instagram without obtaining the express consent of Nigerian users.
It accused Meta of failing to file a 2022 compliance audit, violating cross-border data transfer rules, and processing the data of non-users of its platforms, among other infractions.
Counsel for both parties informed Justice James Omotosho of the Federal High Court, Abuja, shortly after the case was called for ruling.
Justice Omotosho had on July 16 fixed Friday for ruling on NDPC’s preliminary objection against a suit filed by Meta, the parent company of Facebook and Instagram. The Judge had schedule Friday to rule on Meta’s application amend it process.
Punch reported that NDPC had, on February 18, imposed a remedial fine of $32.8 million and issued eight corrective orders against Meta, accusing the American technology giant of violating the privacy rights of Nigerian users through behavioural advertising on its platforms. Dissatisfied, Meta filed a motion ex parte on February 26, challenging the regulatory action.
On March 4, Justice Omotosho granted leave for Meta to commence judicial review proceedings seeking, among other things, an order of certiorari to quash the compliance and enforcement orders issued by the NDPC. However, the judge declined to grant Meta’s request for a stay of proceedings on the NDPC’s “Final Orders” and instead ordered an accelerated hearing.
Counsel representing NDPC, Adeola Adedipe (SAN) in a preliminary objection dated April 10 and filed on April 11, the NDPC urged the court to strike out or dismiss Meta’s suit. He argued that the originating summons was incompetent for non-compliance with Order 34 Rule 6(1) of the Federal High Court (Civil Procedure) Rules, 20219, and that the reliefs sought were academic and incapable of activating the court’s jurisdiction.
On Friday, Meta’s lawyer, Fred Onwuobia (SAN) urged the court to defer the ruling on the preliminary objection and the motion on notice to amend, as the parties have “reached an advanced stage at settlement” in this case.
Confirming this, Adedipe told the court that discussions had progressed substantially and requested time for the parties to finalise terms to be presented as a consent judgment.
In agreement with the request, Justic Omotosho stated that the court encouraged settlement and was therefore not inclined to deliver the ruling. He subsequently adjourned the case to October 31, for either adoption of settlement terms or a ruling.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
