The Federal High Court in Lagos has temporarily barred ARCON from enforcing a $38.55 million penalty against Facebook Nigeria Operations Limited. This ruling follows Facebook’s motion challenging the demands of ARCON, citing constitutional concerns and the right to fair hearing, with further court proceedings scheduled for February 2025.
The Federal High Court in Lagos has issued an interim ruling that prevents the Advertising Regulatory Council of Nigeria (ARCON) from enforcing a $38.55 million (NGN60 billion) financial penalty against Facebook Nigeria Operations Limited. This decision, rendered by Justice Yellim Bogoro on December 12, 2024, follows an ex parte motion filed by Facebook. In its request, Facebook sought to halt both the enforcement of a Notice of Violation/Demand for Compliance from ARCON and any ensuing criminal proceedings. The court has scheduled a further hearing for February 20, 2025, to address the legitimacy of the noticed demand. Facebook contends that the ARCON Notice violates principles of fair hearing and is unconstitutional.
The recent legal proceedings highlight the ongoing tensions between regulatory agencies and technology firms in Nigeria. Facebook, as part of its operations, has faced scrutiny under local advertising regulations, particularly with ARCON recently implementing strict compliance measures. The substantial fine proposed by ARCON reflects the severity of alleged infractions, but the court’s intervention indicates a judicial review of the enforcement powers held by regulatory bodies. This case could have implications for how digital businesses operate in compliance with national legislation.
In summary, the Federal High Court’s ruling provides a temporary safeguard for Facebook against a potentially crippling financial penalty imposed by ARCON. The forthcoming hearing in February 2025 will be critical in determining the legal standing of the allegations made against Facebook. This case underscores the necessity for clarity and fairness in the enforcement of advertising regulations in Nigeria, particularly as they pertain to global technology companies.
Original Source: news.bitcoin.com
