By Opeyemi Adelakun
The Federal High Court in Lagos has nullified the ₦60 billion penalty imposed by the Advertising Regulatory Council of Nigeria (ARCON) on Facebook Nigeria Operations Limited, ruling that the regulator acted outside its statutory powers and breached the company’s right to fair hearing.
In a landmark judgment, Justice Yellim Bogoro held that ARCON lacked the legal authority to impose punitive sanctions for alleged criminal violations without first securing a conviction from a competent court.
The court declared the regulator’s October 21, 2024 Notice of Violation and Demand for Compliance unconstitutional, unlawful and void, and restrained ARCON from taking further steps to enforce the sanction against the company.
The dispute arose after ARCON accused Facebook Nigeria of publishing advertisements targeted at Nigerian audiences on Facebook and Instagram without obtaining prior approval from the Advertising Standards Panel, leading to the ₦60 billion sanction.
However, the court held that Facebook Nigeria is a separate legal entity from Meta Platforms Inc., the parent company that owns and operates Facebook and Instagram, adding that ARCON failed to establish that the Nigerian entity controls or manages the two social media platforms.
Justice Bogoro also ruled that the regulator violated the constitutional right of the company to fair hearing by imposing the sanction without first giving it an opportunity to defend itself.
According to the judgment, offences under the ARCON Act are criminal in nature and any punishment or financial penalty can only follow a valid conviction by a court of competent jurisdiction.
The court subsequently set aside the enforcement notice and issued a perpetual injunction restraining ARCON, its officials and agents from enforcing the ₦60 billion demand against Facebook Nigeria.
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