The United States invents. China scales. And the European Union regulates. Hello, Nigeria extends that…yes, Nigeria wants to collect. How? Osun and Delta States have fined Google and Facebook’s parent company (Meta) $150 million and $200 million, respectively, for allegedly failing to remit withholding taxes (WHT) on payments to content creators and makers.
Recall that Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) recently imposed a $220 million penalty on Meta on allegations of discriminatory practices and the misuse of Nigerian consumers’ data.
You may wonder why the two states are going for the digits. It is simple: these content creators are paid in US dollars, and that means the WHT could also be paid in USD. This is a very serious matter, more serious than the Twitter battle, since people actually make a REAL LIVING on Facebook, Instagram and Google’s YouTube.
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If Nigeria gives these companies heat, they may pause monetization in Nigeria while they fix whatever issues they have with the government. That said, if the rule book is written with WHT in this context, these companies should negotiate and pay!
In a move that marks a shift in Nigeria’s approach to regulatory and antitrust issues, the tax authorities of Osun and Delta states have imposed hefty fines on Google Nigeria and Meta Platforms Inc.
The tech giants have been fined $150 million and $200 million, respectively, for allegedly failing to remit withholding taxes (WHT) on payments to content creators and entertainers in these states from 2020 to the present.
This development comes on the heels of another major regulatory action by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC), which recently imposed a $220 million penalty on Meta Platforms Incorporated. The FCCPC’s penalty was based on allegations of discriminatory practices and the misuse of Nigerian consumers’ data, highlighting an increasing focus on antitrust and consumer protection issues in the country.
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