Nigerian government withdraws N30bn illegal advertisement suit against Meta

A federal high court in Abuja has struck out a suit filed by the Advertising Regulatory Council of Nigeria (ARCON) against Meta Platforms Incorporated, owners of Facebook, Instagram, and WhatsApp social media channels.

In October 2022, ARCON sued Meta and its agent, AT3 Resources Limited, for showing unapproved advertisements to the Nigerian audience.

Justice Peter Lifu dismissed the case on Friday, in suit no: FHC/ABJ/CS/1701/2022, following a notice of discontinuance filed by the plaintiff’s lawyer, Barrister Michael Okorie.

ARCON had alleged that Meta’s exposure of unvetted advertisements resulted in revenue loss for the Federal Government and sought sanctions against Meta and AT3 for violating advertising laws by publishing unapproved ads on its platforms.

In the writ of summons, reported by Nairametrics, ARCON claimed that Meta, managed by AT3 in Nigeria, generates approximately 97.5% of its revenue through the sale of advertising space on its social media platforms globally, including in Nigeria.

The plaintiff argued that about 37 million Nigerians actively use Meta’s platforms, where ads are published without prior ARCON approval, and that Meta and AT3 did not pay the required statutory vetting fees to the Nigerian government.

Okorie contended that these actions contravened Nigerian advertising laws and accused Meta of unethical and irresponsible advertising.

In response, Meta’s lawyer, Tayo Otetibo (SAN), filed a preliminary objection, arguing that the court lacked jurisdiction over the case.

Otetibo stated that Meta, a foreign entity registered in the United States, had not submitted to the jurisdiction of the Nigerian court, and thus the case constituted an abuse of the court process.

During the proceedings on Friday, Okorie informed Justice Lifu of the notice of discontinuance, which stated, “Take notice that the claimant hereby discontinues this suit against the defendants.”

After hearing from Okorie, Justice Lifu dismissed the case per ARCON’s request.

It was reported in May that the regulatory body was granted leave by a federal court to serve a writ of summons on Meta Platforms.

The advertising council sought an order of perpetual injunction restraining the defendants, their privies, agents, servants and associates from publishing any advertising or marketing communications materials without recourse to ARCON in line with the country’s advertising law.

When ARCON sued Meta in October 2022, it said; “ARCON reiterates that it would not permit unethical and irresponsible advertising on Nigeria’s advertising space.

“ARCON further states that it is not regulating the online media space but rather advertising and marketing communications on the online platforms in line with its establishment Act.”

In 2019, it was reported that the Advertising Practitioners Council of Nigeria (APCON) – now ARCON – will start regulating the online advertising space. The Advertising Standards Panel of APCON confirmed it in a release titled: Vetting of Internet-Based Advertisements.

The document read in part: “Going forward, there will be zero tolerance on exposure of adverts on any social media platform including but not limited to YouTube, Facebook, Twitter, blogs and websites without the prior approval of the Advertising Standards Panel (ASP).”

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