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 sources familiar with the discussions have reported that Meta is considering “withdrawing certain services” in Nigeria, according to TechCabal.
In addition to the hefty fine, the FCCPC has 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 practices and restore user control over data usage.
“We want to be very 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 operates. WhatsApp relies on limited data to run our service and keep users safe, and without Meta’s infrastructure, it would be impossible to provide WhatsApp in Nigeria or globally. 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 involve sharing user data.
“While traditionally, mobile carriers and operators store this information, we believe that keeping these records for two billion users would pose both a privacy and security risk, and we don’t do it,” the privacy document states.
If WhatsApp ceases operations in Nigeria, the consequences for individuals and small business owners could be significant. Many SMEs rely on WhatsApp, Instagram, and Facebook to reach their target customers.
Three privacy lawyers have questioned the FCCPC’s reference to the National Data Protection Regulation (NDPR) as the basis for the fine. Enacted in 2019 by the National Information Technology Development Agency (NITDA), the NDPR serves as the primary data protection framework in Nigeria.
Two lawyers who requested anonymity stated that the NDPR would not withstand scrutiny in court and questioned whether a government regulation could be authoritative in a matter as critical as privacy.
While Meta is undoubtedly subject to regulatory oversight, the proportionality of the $220 million fine imposed by the FCCPC is questionable, according to two government figures who also wished to remain anonymous.
“We are too revenue-focused. What is the opportunity cost of $220 million in government coffers?” an industry expert asked.
If WhatsApp halts operations in Nigeria due to these demands, the FCCPC and the Nigerian government will have their answer.
