One week after Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) fined WhatsApp $220 million for a data privacy violation, the commission’s additional demands could lead to WhatsApp suspending operations in the country. At least four people familiar with the conversation said Meta was considering “withdrawing certain services” in Nigeria.
In addition to the hefty fine, FCCPC asked WhatsApp to stop sharing user data with other Facebook companies and third parties without explicit consent. The social media platform must also provide information about data collection and restore user control over data usage.
“We want to be really clear that technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally,” a spokesperson for WhatsApp told TechCabal via email.
“This order contains multiple inaccuracies and misrepresents how WhatsApp works. WhatsApp relies on limited data to run our service and keep users safe, and it would be impossible to provide WhatsApp in Nigeria or globally without Meta’s infrastructure. We are urgently appealing the order to avoid any impact on users,” the statement added.
Meta did not comment on the FCCPC’s claim that WhatsApp did not allow users to opt out of the 2021 policy. However, it insisted that its January 2021 Privacy Policy update does not include sharing user data.
“While traditionally mobile carriers and operators store this information, we believe that keeping these records for two billion users would be both a privacy and security risk and we don’t do it,” the privacy document reads.
If Whatsapp ceases operations in Nigeria, it will have enormous consequences for individuals and small business owners. Many SMEs rely on WhatsApp, Instagram, and Facebook to reach their target customers.
Three privacy lawyers questioned the FCCPC’s reference to the National Data Protection Regulation (NDPR) as a basis for the fine. Enacted in 2019 by the National Information Technology Development Agency (NITDA), NDPR is the primary data protection framework in Nigeria.
Two lawyers who asked not to be named say the NDPR will not stand up to scrutiny in court and asked if a government regulation could be authoritative in a matter as significant as privacy.
While Meta is undoubtedly subject to regulatory oversight, the proportionality of the $220 million fine levied by the FCCPC is questionable, two government figures who asked not to be named said.
“We are too revenue-focused. What is the opportunity cost of $220 million in government coffers?” asked an Industry expert.
However, in a post on X late on Thursday, August 1, 2024, the Nigerian consumer protection agency described the threat to exit by Meta as a strategic move aimed at influencing public opinion and potentially pressuring the FCCPC to reconsider its decision.
It reaffirmed its earlier stance that the tech platform discriminated against Nigerian users compared to users in other jurisdictions and abused its dominant market position by forcing unfair privacy policies.
The FCCPC said: “WhatsApp’s claim that it may be forced to exit Nigeria due to FCCPC’s recent order appears to be a strategic move aimed at influencing public opinion and potentially pressuring the FCCPC to reconsider its decision.
“The FCCPC investigated Meta Platforms and WhatsApp (jointly referred to as “Meta Parties”) for allegedly violating the Federal Competition and Consumer Protection Act and the Nigeria Data Protection Regulation.
“The Commission found that Meta Parties engaged in multiple and repeated infringements of the FCCPA and the NDPR.
“These infringements included denying Nigerians the right to control their personal data, transferring and sharing Nigerian user data without authorisation, discriminating against Nigerian users compared to users in other jurisdictions and abusing their dominant market position by forcing unfair privacy policies.”
It added that, “The final order requires Meta Parties to take steps to comply with Nigerian law, stop exploiting Nigerian consumers, change their practices to meet Nigerian standards and respect consumer rights.
“To deter future violations and ensure accountability for the alleged infringements the FCCPC also imposed a monetary penalty of $220m.
“The FCCPC’s actions are based on legitimate concerns about consumer protection and data privacy and the order is a positive step towards a fairer digital market in Nigeria. Similar measures are taken in other jurisdictions without forcing companies to leave the market. The case of Nigeria will not be different,” the statement concluded.
TechCabal contributed to this report
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