A Federal High Court in Lagos has issued an interim order barring the Advertising Regulatory Council of Nigeria (ARCON) and its agents from enforcing a ₦60 billion fine against Facebook Nigeria. The directive follows allegations of advertising regulation violations.
The presiding judge, Justice Yellim Bogoro, granted the order after reviewing an ex parte application filed by Facebook’s legal counsel, Mofesomo Tayo-Oyetibo, under suit number FHC/L/CS/2205/2024. In a detailed ruling, the court restrained ARCON from pursuing enforcement actions or initiating criminal proceedings pending further deliberation.
Justice Bogoro, in his judgment, outlined the basis for granting the interim relief, noting that the facts presented in Facebook’s affidavit held substantial merit.
“It is hereby ordered as follows: An interim order of injunction is granted pending the determination of the motion on notice for interlocutory injunction restraining the defendant, whether by itself or through its officers, agents, or other representatives, from enforcing the notice of violation or demand for compliance dated 21 October 2024,” the judge stated.
The case was subsequently adjourned to February 20, 2025, for a full hearing.
Facebook Nigeria sought two critical reliefs from the court:
- Interim Injunction Against ARCON’s Notice: Facebook requested that ARCON be barred from enforcing the ₦60 billion fine or taking any punitive actions until the case is determined.
- Interim Injunction Against Criminal Proceedings: The company also sought protection against criminal prosecution in the Advertising Offences Tribunal, arguing that such proceedings would be premature and oppressive.
The application was supported by 11 grounds, emphasizing that ARCON’s actions were unconstitutional and violated Facebook’s right to fair hearing under the Advertising Regulatory Council of Nigeria Act (2022).
Facebook raised concerns about the legality of ARCON’s notice of violation, issued on October 21, 2024, which alleged regulatory breaches and imposed the massive fine. The company contended that ARCON’s actions were ultra vires (beyond its powers) and procedurally flawed.
In its filing, Facebook highlighted several issues, including:
- Fair Hearing Violations: The company argued that ARCON’s notice was issued without affording Facebook an opportunity to present its case.
- Threat of Criminal Prosecution: Facebook stated that ARCON threatened enforcement through criminal prosecution if its demands were not met, adding that such actions would be vexatious and oppressive.
- Tribunal Concerns: Facebook pointed out that ARCON appoints the prosecutors and recommends members of the Advertising Offences Tribunal, creating a potential conflict of interest.
The social media giant also underscored the urgency of its application, noting that criminal proceedings could not be stayed under the Administration of Criminal Justice Act (2015).
This case is the latest in a series of legal battles between ARCON and Facebook’s parent company, Meta Platforms Inc. In July 2024, a Federal High Court in Abuja struck out a separate suit filed by ARCON against Meta, alleging unauthorized advertisements targeting Nigerian audiences.
In October 2022, ARCON initiated a ₦30 billion lawsuit against Meta and its agent, AT3 Resources Limited, for displaying unapproved advertisements in Nigeria. This earlier case marked the beginning of ARCON’s intensified scrutiny of social media advertising compliance.
The ongoing dispute underscores tensions between regulatory authorities and global tech companies navigating Nigeria’s advertising landscape. ARCON, established to enforce advertising standards, has faced criticism for its enforcement methods and perceived overreach.
For Facebook and other digital platforms, the case highlights the growing challenge of navigating regulatory frameworks in emerging markets. Industry analysts suggest that the outcome of this legal battle could set a precedent for how advertising regulations are enforced in Nigeria.
As the case resumes in February 2025, all eyes will be on the Federal High Court’s interpretation of ARCON’s powers under the 2022 Act and its application to digital platforms like Facebook. Both parties are expected to present robust arguments, with broader implications for regulatory enforcement, corporate compliance, and the digital advertising ecosystem in Nigeria.
