A Federal High Court in Lagos has voided the ₦60 billion penalty slammed on Facebook Nigeria, ruling that the advertising regulator exceeded its legal authority.
The ARCON Facebook ruling stems from a dispute over advertisements displayed on Facebook and Instagram without prior approval from the Advertising Standards Panel. Delivering judgment in Suit No. FHC/L/CS/2205/2024, Justice Yellim Bogoro declared the Advertising Regulatory Council of Nigeria (ARCON) notice dated October 21, 2024, unconstitutional, unlawful and void.
The court ruled that ARCON acted outside its statutory powers and breached Facebook Nigeria’s constitutional right to a fair hearing. It also restrained the regulator from taking further action to enforce the sanction.
The case began after ARCON accused Facebook Nigeria of exposing unapproved advertisements to the Nigerian market and demanded ₦60 billion for what it described as repeated violations of the ARCON Act and the Nigerian Code of Advertising.
Facebook Nigeria, represented by Mofesomo Tayo-Oyetibo (SAN), argued that the regulator lacked the authority to determine criminal liability or impose financial penalties without first giving the company an opportunity to respond. The company also maintained that it neither owns nor operates Facebook or Instagram, explaining that both platforms belong to Meta Platforms Inc.
Representing ARCON, Akinlolu Kehinde (SAN) argued that Facebook Nigeria represents Meta’s operations in Nigeria and should therefore be responsible for regulatory compliance.
However, the ARCON Facebook ruling found that Facebook Nigeria is a separate legal entity from Meta Platforms Inc. Justice Bogoro held that ARCON failed to provide sufficient evidence showing that the Nigerian company owns or controls Facebook or Instagram.
The court further ruled that the alleged breaches under the ARCON Act are criminal offences, meaning any punishment can only follow a conviction by a competent court. According to the judgment, the ₦60 billion demand was effectively a fine that ARCON had no legal power to impose through an administrative process.
The ARCON Facebook ruling is expected to shape future regulation of digital advertising by reinforcing the limits of regulatory agencies’ powers and affirming that criminal sanctions must follow due judicial process.
