Federal High Court Grants Facebook Temporary Relief from Regulatory Demand in Nigeria

The Federal High Court in Lagos has granted Facebook Nigeria an interim order restraining ARCON from demanding $38.55 million for alleged regulatory violations. The court’s decision follows Facebook’s motion to prevent enforcement of ARCON’s notice and to halt potential criminal proceedings. A further hearing is set for February 20, 2025, focusing on constitutional challenges related to the notice.

The Federal High Court in Lagos has issued a significant interim ruling that temporarily prohibits the Advertising Regulatory Council of Nigeria (ARCON) from demanding a payment of $38.55 million (approximately NGN 60 billion) from Facebook Nigeria Operations Limited. This ruling, granted by Justice Yellim Bogoro on December 12, 2024, follows a motion filed by Facebook that seeks to prevent ARCON from enforcing a Notice of Violation and from initiating any criminal proceedings against the company. The court has scheduled a further hearing on this matter for February 20, 2025, as Facebook challenges the constitutionality of ARCON’s demands on the basis that they violate principles of fair hearing and legality.

The dispute between Facebook and ARCON arises from allegations made by the regulatory body that Facebook violated certain advertising regulations, leading to the substantial financial demand. The ruling by the Federal High Court serves not only to protect Facebook from immediate financial repercussions but also addresses larger questions surrounding regulatory authority and corporate compliance in Nigeria. The upcoming hearings will be crucial in determining the legality of ARCON’s enforcement actions and their impact on digital advertising practices in the country.

In summary, the Federal High Court’s interim order has provided Facebook a temporary reprieve from ARCON’s significant financial demands while challenging the constitutionality of the notice issued by the regulator. The upcoming hearings are expected to clarify the legal boundaries of regulatory actions and ensure that entities like Facebook can advocate for their rights regarding fair treatment under the law.

Original Source: news.bitcoin.com