Court Orders Restraint on ARCON’s $38.55 Million Demand from Facebook

The Federal High Court in Lagos temporarily halted ARCON’s demand for $38.55 million from Facebook Nigeria, allowing Facebook to challenge the constitutionality of the notice. A hearing is scheduled for February 20, 2025.

On December 12, 2024, the Federal High Court in Lagos issued an interim order that prohibits the Advertising Regulatory Council of Nigeria (ARCON) from pursuing a demand of $38.55 million (approximately NGN60 billion) from Facebook Nigeria Operations Limited. This ruling follows a motion filed by Facebook seeking relief against ARCON’s enforcement of a Notice of Violation and the initiation of criminal proceedings. The court has postponed the matter for further hearing until February 20, 2025, allowing Facebook to challenge the legality and fairness of ARCON’s actions.

This case arises in the context of increasing regulatory scrutiny faced by foreign companies operating in Nigeria, particularly concerning advertising compliance. The Advertising Regulatory Council of Nigeria is tasked with ensuring advertising standards, and its recent Notice was ostensibly tied to alleged infractions by Facebook. Facebook’s action reflects a broader concern regarding the balance of governmental oversight and the rights of businesses, especially in terms of fair hearing principles and legality in enforcement processes.

In summary, the Federal High Court’s interim order reflects a critical juncture in the ongoing legal conflict between Facebook and ARCON over substantial financial penalties claimed for perceived regulatory violations. The court’s decision temporarily halts the enforcement of the regulatory body’s demands, granting Facebook the opportunity to contest the notice’s constitutionality. The situation underscores the complexities of regulatory frameworks as they pertain to international corporations operating in Nigeria.

Original Source: news.bitcoin.com