PRESIDENT Bola Ahmed Tinubu has directed the Federal Competition and Consumer Protection Commission (FCCPC) to investigate major global technology companies and Generative Artificial Intelligence (AI) platforms over allegations of anti-competitive practices, unlawful exploitation of Nigerian news content, and other potentially unfair market conduct.
The directive followed a joint petition submitted to the Presidency by the Nigerian Press Organisation (NPO), an umbrella body comprising the Newspaper Proprietors’ Association of Nigeria (NPAN), the Nigeria Union of Journalists (NUJ), the Broadcasting Organisations of Nigeria (BON), and the Guild of Corporate Online Publishers (GOCOP).
The directive was conveyed to the FCCPC through a letter signed by the Minister of Information and National Orientation, Mohammed Idris, according to a statement issued on Monday in Abuja by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu.
The FCCPC said the investigation would focus on major technology companies, including Meta, Alphabet, the parent company of Google, X (formerly Twitter), as well as Generative AI platforms operating in Nigeria.
According to the Commission, the inquiry is expected to mark a significant development in Nigeria’s media landscape, amid growing concerns by media organisations over the impact of digital platforms on the sustainability of the country’s news ecosystem.
The NPO alleged that the practices of some technology companies have undermined fair competition, threatened the commercial viability of Nigerian media organisations, and infringed on the rights of content creators and publishers.
“The investigation promises to open a new vista in Nigeria’s media history,” the FCCPC said, noting that Nigerian publishers have become increasingly concerned about the growing influence of global technology companies and AI platforms on the production, distribution and monetisation of news content.
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the Commission would conduct an independent, transparent and evidence-based investigation to establish the facts.
“We recognise the strategic importance of the media to Nigeria’s 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,” Bello said.
He stressed that the investigation should not be interpreted as an indication of wrongdoing by any company.
“This 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,” he added.
The Commission said the investigation would determine whether the practices complained of violate the Federal Competition and Consumer Protection Act (FCCPA) 2018 or any other applicable law.
Among the key issues to be examined are allegations of market dominance and anti-competitive conduct by global technology companies, as well as claims of unauthorised extraction, scraping, ingestion and commercial use of copyrighted news articles, broadcast materials and other original journalistic content for the development and training of Generative AI models.
The FCCPC will also investigate complaints that Nigerian publishers have been denied meaningful opportunities to negotiate fair compensation and equitable commercial arrangements for the use of their journalistic content.
The development comes amid increasing global scrutiny of the relationship between digital platforms and news publishers, with several countries introducing regulatory measures requiring technology companies to compensate media organisations for the use of their content.
The FCCPC cited South Africa as an example, where sustained advocacy by media organisations and an investigation by the South African Competition Commission culminated in an agreement under which Google would pay South African news media R688 million (about $40 million) annually for a period of three to five years.
The latest probe also comes after the FCCPC secured a landmark judgment against Meta over alleged violations of Nigeria’s competition and consumer protection laws, including data privacy breaches. The Commission imposed a $220 million penalty on the company, a decision Meta has appealed.
The outcome of the investigation is expected to have far-reaching implications for Nigeria’s digital economy, the future of journalism and the regulatory framework governing the relationship between global technology companies and local media organisations, as the Federal Government seeks to ensure compliance with Nigerian laws and fair compensation for locally-generated news content.
