Meta Off the Hook: ARCON withdraws lawsuit, shifts focus to new strategy

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Meta Off the Hook: ARCON withdraws lawsuit, shifts focus to new strategy

Meta Off the Hook: ARCON withdraws lawsuit, shifts focus to new strategy

The Advertising Regulatory Council of Nigeria (ARCON) has withdrawn its high-profile lawsuit against Meta Platforms Incorporated. The legal battle, initiated on September 23, 2022, aimed to regulate advertisements on social media platforms, a move initially prompted by a resolution from the House of Representatives.

The lawsuit, known as Suit FHC/ABJ/CS/1701/2022, was filed against Meta and AT3 Resources Limited. Initially presided over by Justice A.M. Mohammed, the case was later transferred to Justice Peter Lifu in 2023 following Mohammed’s retirement. ARCON’s decision to withdraw came after filing a notice of discontinuance before Justice Lifu at the Federal High Court in Abuja.

Dr. Lekan Fadolapo, ARCON’s Director General, emphasized that this move is not a retreat but a strategic reevaluation. “Since October 13, 2022, when the writ was filed, we’ve observed continuous violations of the Nigerian advertising code by Meta and its subsidiaries.

The lack of progress in bringing the case to trial over the past two years has necessitated a reevaluation of our strategy. Management is doing this to ensure that all social media platforms are operating within the ambit of the law,” he stated.

READ ALSO: Federal Gov’t imposes $220m fine on Meta for data, consumer law breach

Legal experts highlighted the significance of ARCON’s tactical withdrawal. Barrister Oloyede Lateef, an expert in media and advertising law, explained, “There’s a crucial tactical difference between a case being dismissed and one being struck out. A dismissed case is essentially dead and can not be revived. However, a struck-out case, which is what we have here, can always be brought up again. This gives ARCON the flexibility to reintroduce the case in the future if necessary.”

Industry observers remain divided on the regulation of digital media in Nigeria. A senior advertising executive, speaking anonymously, described ARCON’s decision as pragmatic.

“For a case that hasn’t gone to trial in two years, this was the logical move. The issue of digital media regulation is a very dicey one, but one that is very important to sanitise that space,” the source added.

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