Nigeria’s digital economy is growing at an unprecedented pace. Social media platforms and other technology platforms like TikTok, YouTube, Instagram, and fintech apps now reach millions of users, creators, and advertisers across the country. As these markets evolve, there is a growing need for clear regulatory guidance on competition regulation of digital platforms and digital markets.
Recent FCCPC Enforcement Highlights the Need for Guidance
Digital markets differ significantly from traditional markets and recent enforcement actions underscore how urgent regulatory guidance is. In 2024, the FCCPC imposed a US$220 million fine on Meta Platforms (parent of Facebook, Instagram and WhatsApp) following a joint investigation with the Nigeria Data Protection Commission (NDPC) into alleged data privacy, anti-competitive, and consumer protection violations for Nigerian users. In April 2025, the Competition and Consumer Protection Tribunal upheld the fine, affirming the FCCPC’s authority to regulate digital platforms under the existing law.
Risks of Mischaracterizing Digital Market Conduct
Without clear guidance on digital markets and social media platforms from the FCCPC, digital markets are at risk of being mischaracterized by regulators. For example, a platform’s decision not to roll out a service in a particular region driven by strategic, technical, or economic considerations could be misconstrued as anti-competitive exclusion. Similarly, the dominance of a platform might be over- or under-estimated if network effects, multi-sided interactions, or data-driven market power are not properly accounted for. Additionally, regular business decisions, such as adjusting monetisation models, changing algorithmic recommendations, or limiting certain features in certain jurisdictions, could be mistakenly classified as abuse of dominance. Clear guidance would help the FCCPC distinguish between legitimate business strategy and genuinely anti-competitive conduct and ensure that enforcement is both proportionate and predictable.
Why Digital Market Guidance is Necessary
Social media platforms are often multi-sided, connecting creators, users, and advertisers, and rely on data and network effects. Traditional competition-law analysis, which focuses on price, substitutability, and geographic markets, is often insufficient to assess digital platform dynamics. Without a dedicated regulatory framework for regulating digital markets in Nigeria, the FCCPC, businesses, and consumers risk regulatory uncertainty in defining dominance, abuse, and market boundaries.
Issuing a comprehensive digital markets guidance would amongst others help:
- Define relevant product and geographic markets for digital services.
- Address network effects and data-driven market power issues.
- Provide clear standards for fair competition, abuse of dominance, consumer protection, and data privacy.
- Promote business compliance, attract investment, and protect digital consumers and creators.
Navigating Competition Risks for Tech Platforms in Nigeria
Pending the issuance of digital markets guidance by the FCCPC, social media platforms operating in Nigeria can take proactive steps to mitigate competition and regulatory risks. In many ways, such proactive steps can help reduce the likelihood of mischaracterization, build trust with regulators, and operate confidently in Nigeria’s evolving digital economy. Amongst others, it may be prudent to:
- Conduct internal compliance reviews of business practices to ensure they do not inadvertently create perceptions of anti-competitive behavior.
- Document strategic decisions such as service rollouts, monetisation changes, or feature limitations, with clear business rationale.
- Engage with regulators proactively to seek clarifications or guidance on novel digital-market practices.
- Monitor international best practices for digital market regulation, including frameworks like the European Digital Markets Act, and adapting lessons to Nigeria’s context.
- Implement robust consumer-protection policies to demonstrate commitment to fairness, transparency, and data privacy.
Key Takeaways
Nigeria’s digital economy represents a unique opportunity to lead in shaping fair and competitive digital markets. However, it’s also important for regulation to keep pace with innovation. The FCCPC should prioritize issuing a digital markets guidance, tailored to Nigeria’s context yet informed by global best practices, to anchor Nigeria’s digital economy in transparency, fairness, and competitiveness.
This publication is based on the authors' independent analysis, observations, and experience advising clients on regulatory and compliance matters. It is provided solely for informational purposes. The views expressed herein do not constitute legal advice or an official recommendation, nor do they represent the position of any institution or client. Readers should seek specific professional advice before relying on any part of this publication.
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