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Tinubu directs investigation into Meta, Google, and artificial intelligence services

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Tinubu directs investigation into Meta, Google, and artificial intelligence services
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President Bola Tinubu has instructed the Federal Competition and Consumer Protection Commission to investigate prominent global technology companies and Generative Artificial Intelligence platforms for alleged anti-competitive practices and unlawful exploitation of Nigerian media organisations' content.

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This directive comes approximately four months after Tinubu pledged that his government would support the Nigerian media's evidence-led campaign against Big Tech dominance and anti-competitive activities, which have been affecting local media.

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The move is a response to a joint petition submitted to the Presidency by the Nigerian Press Organisation, which comprises the Newspaper Proprietors’ Association of Nigeria, the Nigeria Union of Journalists, the Broadcasting Organisations of Nigeria, and the Guild of Corporate Online Publishers.

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The investigation, as conveyed to the FCCPC through the Minister of Information and National Orientation, Mohammed Idris, may mark a new chapter in the relationship between global digital platforms and Nigeria's media industry, which has long complained about declining revenues and uncompensated use of its content by technology companies.

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A statement issued by the Director of Corporate Affairs at the FCCPC, Ondaje Ijagwu, on Monday, revealed that the investigation will focus on allegations against major technology companies, including Meta, Alphabet, which owns Google, and X, formerly known as Twitter, as well as certain Generative Artificial Intelligence platforms operating in Nigeria.

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The statement noted that the FCCPC will investigate allegations of anti-competitive practices, unlawful exploitation of news content, and other potentially unfair market conduct by big technology companies, including Generative Artificial Intelligence platforms operating in Nigeria.

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The media organisations alleged that the activities of these firms could undermine fair competition, threaten the commercial viability of Nigerian media organisations, and violate the legitimate rights of content creators and publishers.

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The investigation promises to open a new vista in Nigeria's media history, as concerns have been raised by the Nigerian media industry over the growing impact of certain digital platforms on the sustainability of the country's news ecosystem.

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The Nigerian Press Organisation is increasingly uncomfortable with major technology companies, including Meta, Alphabet, X, and certain Generative AI platforms, citing practices that could undermine fair competition, the commercial viability of Nigerian media organisations, and the legitimate rights of content creators and publishers.

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The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, stated that the commission will conduct an independent, transparent, and evidence-based investigation into the allegations, recognising the strategic importance of the media to Nigeria's democracy and the significant role of technology in driving innovation and economic growth.

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Bello clarified that the inquiry is not directed at any entity by presumption of wrongdoing, but rather 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.

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The 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, and will focus on allegations of market dominance and possible anti-competitive conduct by global technology companies.

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The investigation will also examine 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.

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The commission will 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.

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The development comes amid growing global concerns over the relationship between media organisations and technology companies that distribute and monetise news content, with several countries introducing regulations to compel digital platforms to negotiate compensation agreements with publishers.

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In South Africa, media organisations and investigations by the South African Competition Commission led to an agreement under which Google would pay South African news media R688m annually for between three and five years.

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The outcome of the Nigerian investigation could have far-reaching implications for the future of journalism and digital regulation in the country, and comes barely a year after the FCCPC secured a landmark judgment against Meta over alleged violations of Nigeria's competition and consumer protection laws.

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The commission imposed a $220m penalty on the technology giant, although the company has appealed the decision, and the latest investigation signals the Federal Government's determination to ensure that global technology firms operating in Nigeria comply with local laws.

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Representatives of Google and Meta acknowledged requests for comment on the FCCPC's announcement, but neither had provided a substantive response as of the time of filing this report.

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President Tinubu gave the assurance during an interfaith dinner held in March with a high-level delegation from the Nigerian Press Organisation, led by the NPO President and Publisher of The Guardian, Lady Maiden Alex-Ibru.

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The delegation included industry leaders and patrons, such as Aremo Olusegun Osoba, publisher of Vanguard, Mr Sam Amuka, Chairman of THISDAY/ARISE News Channel, Prince Nduka Obaigbena, Chairman of Channels Television, Dr John Momoh, and Director-General of the Nigerian Television Authority, Alhaji Saliu Abdulhamid Dembos.

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Earlier, the Deputy President of the Newspaper Proprietors’ Association of Nigeria and Publisher of BusinessDay, Mr Frank Aigbogun, accused some tech companies of increasingly "scraping" proprietary creative content to train AI models, often by breaching digital paywalls.

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Aigbogun requested the president to direct the FCCPC to work with the media to investigate complaints that Big Tech dominance and anti-competitive practices were costing local media at least 70 per cent of its legitimate income, estimated by some sources at hundreds of millions of dollars.

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