Story Highlights
- The Federal High Court in Abuja has struck out ARCON’s N30 billion lawsuit against Meta Platforms and AT3 Resources Limited regarding alleged illegal advertising practices.
- ARCON accused Meta Platforms of exposing unvetted adverts in Nigeria without approval, leading to revenue loss for the Nigerian government.
- Meta Platforms argued for lack of jurisdiction, stating it’s a foreign entity not subject to Nigerian court jurisdiction unless it submits voluntarily.
The Federal High Court sitting in Abuja has struck out a N30 billion alleged illegal advertisement lawsuit instituted against Meta Platforms Incorporated (owners of Facebook, Instagram and WhatsApp platforms) and its agent AT3 Resources Limited by the Advertising Regulatory Council of Nigeria (ARCON).
Justice Peter Lifu struck out ARCON’s case on Friday, in suit no: FHC/ABJ/CS/1701/2022, following a notice of discontinuance entered by the plaintiff’s lawyer, Barrister Micheal Okorie.
ARCON stated that Meta’s continued exposure to unvetted adverts has also led to loss of revenue to the Federal Government, and as a result, sought sanctions against Meta and AT3 for their alleged violation of advertising laws following Meta’s continued exposure of unapproved adverts on its platforms.
ARCON’s Case against Meta
In ARCON’s writ of summons seen by Nairametrics, it submitted that Meta, managed by AT3 in Nigeria is involved in the publication and exposure of adverts, advertisement and marketing communications on various online/social media platforms as a major source of its revenue generation and generates about 97.5% of its revenue through the sale of advertising space on its various social media platforms globally and Nigeria inclusive.
The Plaintiff stated that online statistics in 2022 showed that about 37 million Nigerians were active users of Meta’s online social media platforms and it was publishing and exposing to the Nigerian market and in the country, adverts, advertisements and marketing communications without alleged prior approval of the ARCON.
He added that defendants were not paying the prescribed statutory vetting fees to the Government of the Federal Republic of Nigeria for every advert, advertisement and marketing communications on its platforms.
Okorie argued that the development was in contravention of extant advertising laws in Nigeria.
ARCON’s legal team further accused Meta of alleged unethical and irresponsible advertising on Nigeria’s advertising space, urging the court to impose a N30 billion cost against Meta, to be paid to FG’s Treasury Single Account(TSA).
Meta Objects
In Meta’s preliminary objection(PO) seen by Nairametrics, Tayo Otetibo (SAN) urged the court to strike out the suit for lack of jurisdiction.
Jurisdiction in law means the powers of a court to preside over and determine a case brought before it.
Otetibo contended in his PO dated July 8, 2024, that Meta is a foreign entity registered in the United States of America(USA).
He submitted that the court can only exercise jurisdiction over a foreign entity, such as the Meta, where it has submitted to the court’s jurisdiction.
He urged the court to hold that the ARCON suit constitutes an abuse of the court process, adding that Meta has not submitted to the jurisdiction of the Nigerian court.
What transpired in court
At resumed proceedings on Friday, Okorie told Justice Lifu that he had filed a notice of discontinuance.
The notice seen by Nairametrics reads, “Take notice that the claimant hereby discontinues this suit against the defendants“.
After hearing from Okorie, Justice Peter Lifu “struck out” the matter in line with ARCON’s request.
What you should know
- ARCON is a regulatory agency of the Federal Government of Nigeria under the supervision of the Federal Ministry of Information, duly established by an act of the National Assembly to regulate advertising practice, advertisement and marketing communications directed at the Nigerian market or exposed within the Nigerian territory.
- Meta is a multinational social technology company formerly known as Facebook Inc. and owners of various social media platforms such as Facebook, Instagram, WhatsApp and other products.
- The AT3 is a marketing communication company incorporated in Nigeria which engages in reputation management, communications strategy and planning and specifically manages the reputation, communications strategy and social media public relations account of Meta in West Africa generally and Nigeria in particular.
- Nairametrics reports that as of last year, advertisers on Facebook paid a 7.5% Value Added Tax(VAT) charge to display their ads.
- If ARCON had won its case in court, then there was a high possibility that the cost for vetting would fall on the advertiser and not Meta.
