President Bola Tinubu has directed the Federal Competition and Consumer Protection Commission to investigate major global technology companies and Generative Artificial Intelligence platforms over allegations of anti-competitive practices and unlawful exploitation of the content of Nigerian media organisations.The move followed a joint petition submitted to the Presidency by the Nigerian Press Organisation, an umbrella body comprising the Newspaper Proprietorsโ Association of Nigeria, the Nigeria Union of Journalists, the Broadcasting Organisations of Nigeria and the Guild of Corporate Online Publishers.The directive, conveyed to the FCCPC through the Minister of Information and National Orientation, Mohammed Idris, could open a new chapter in the relationship between global digital platforms and Nigeriaโs media industry, which has for years complained about declining revenues and the increasing use of its content by technology companies without compensation.A statement issued on Monday by the Director of Corporate Affairs at the FCCPC, Ondaje Ijagwu, said the investigation would focus on allegations against major technology companies, including Meta, Alphabet, which owns Google, and X, formerly known as Twitter, as well as certain Generative AI platforms operating in Nigeria.
The statement partly read, โBig technology companies have come under the radar of the Federal Competition and Consumer Protection Commission following allegations of anti-competitive practices, unlawful exploitation of news content, and other potentially unfair market conduct.โAlso to be investigated are Generative Artificial Intelligence platforms operating in Nigeria. This is in sequel to a directive from President Bola Ahmed Tinubu, GCFR to FCCPC to look into a joint petition submitted to the Presidency by the Nigerian Press Organisation.โThe media organisations alleged that the activities of the firms could be undermining fair competition, threatening the commercial viability of Nigerian media organisations and violating the legitimate rights of content creators and publishers.
โThe investigation promises to open a new vista in Nigeriaโs media history. In recent years, concerns have been raised by the Nigerian media industry over the growing impact of certain digital platforms on the sustainability of the countryโs news ecosystem.โSpecifically, the NPO is increasingly uncomfortable with major technology companies including Meta, Alphabet, X (formerly Twitter), and certain Generative AI platforms, citing practices capable of undermining fair competition, the commercial viability of Nigerian media organisations, and the legitimate rights of content creators and publishers,โ the statement added.The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the commission would conduct an independent, transparent and evidence-based investigation into the allegations.โWe recognise the strategic importance of the media to Nigeriaโs democracy and the equally significant role of technology in driving innovation and economic growth. Our responsibility is to objectively determine the facts and ensure that competition within the digital ecosystem remains fair, transparent, and consistent with Nigerian law,โ said Bello.Clarifying the issues, Bello added, โThis inquiry is not directed at any entity by presumption of wrongdoing. Rather, it is an opportunity to carefully examine the facts, hear from all affected parties, and determine whether any conduct has resulted in anti-competitive outcomes or unfair business practices. Every party will be accorded a fair opportunity to present relevant information before any conclusions are reached.โ
In specific terms, FCCPC will determine whether the practices in question constitute a breach of the Federal Competition and Consumer Protection Act 2018 or any other applicable law.According to the commission, the investigation will determine whether the practices complained of constitute a violation of the Federal Competition and Consumer Protection Act, 2018, or any other applicable law.
The FCCPC said the probe would focus on allegations of market dominance and possible anti-competitive conduct by global technology companies.Another major area of investigation is the alleged unauthorised extraction, scraping, ingestion and commercial utilisation of copyrighted news articles, broadcast materials and other original journalistic content for the development and training of Generative Artificial Intelligence models.The commission will also examine complaints by Nigerian publishers that they have been denied meaningful opportunities to negotiate fair compensation and appropriate commercial arrangements for the use of their journalistic content.The development comes amid growing global concerns over the relationship between media organisations and technology companies that distribute and monetise news content.Several countries have in recent years introduced regulations compelling digital platforms to negotiate compensation agreements with publishers.In South Africa, sustained agitation by media organisations and investigations by the South African Competition Commission culminated in an agreement under which Google would pay South African news media R688m, equivalent to about $40m, annually for between three and five years.The outcome of the Nigerian investigation could have far-reaching implications for the future of journalism and digital regulation in the country.
The probe also comes barely a year after the FCCPC secured a landmark judgment against Meta over alleged violations of Nigeriaโs competition and consumer protection laws, including data privacy breaches.The commission imposed a $220m penalty on the technology giant, although the company has appealed the decision.
The latest investigation signals the Federal Governmentโs determination to ensure that global technology firms operating in Nigeria comply with local laws and that Nigerian publishers receive fair value for the content that sustains the digital information ecosystem.
Punch