WhatsApp, a popular messaging platform in Nigeria, is considering withdrawing its services from the country in response to a $220 million fine and additional demands imposed by the Federal Competition and Consumer Protection Commission (FCCPC).
A 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 prompt WhatsApp to suspend its operations in the country. According to at least four insiders, Meta is considering "withdrawing certain services" in Nigeria.
The FCCPC accused Meta, WhatsApp's parent company, of violating Nigerian data protection laws by enforcing exploitative and non-compliant privacy practices, including excessive data collection that could lead to device fingerprinting. The investigation found that such practices were not used in Meta's European operations, suggesting discriminatory treatment of Nigerian users.
Alongside the substantial fine, the FCCPC has demanded that WhatsApp cease sharing user data with other Facebook companies and third parties without explicit consent. The platform is also required to disclose details about its data collection practices and restore user control over data usage.
In a statement, a WhatsApp spokesperson said the FCCPC's order contains several inaccuracies and misrepresents how the platform operates. They argued that technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally.
“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.
Meta stated that the FCCPC's order contains inaccuracies and misrepresents how WhatsApp operates, emphasizing that the platform relies on limited data and Meta’s infrastructure to function globally. Although, they are urgently appealing the order to prevent any disruption to users, but Meta did not address the FCCPC’s claim about the lack of an opt-out option in the 2021 policy, however, maintained that the January 2021 Privacy Policy update document does not involve sharing user data.
"Traditionally, mobile carriers and operators store this information, but we believe that retaining such records for two billion users would pose both privacy and security risks, which is why we don’t do it," the privacy document states.
WhatsApp has appealed the fine, presenting 22 arguments for a review. The company claims the FCCPC's directive on data use is unreasonably vague, lacks a solid legal basis, and would be operationally burdensome to implement. WhatsApp also argues that Nigerian law does not mandate prior approval of privacy policies from the NDPC or any other agency.
Despite these issues, WhatsApp's responses remain largely in denial, indicating ongoing disputes between the FCCPC and Meta. The potential withdrawal of WhatsApp from Nigeria would have significant economic consequences, potentially disrupting business activities, affecting customer engagement, and impacting the broader commercial landscape.
That is, if WhatsApp exits Nigeria, it would significantly impact individuals and small businesses, many of which rely on WhatsApp, Instagram, and Facebook for customer outreach.
Three privacy lawyers have questioned the FCCPC's use of the National Data Protection Regulation (NDPR) as the basis for the $220 million fine, noting that the NDPR, established in 2019, may not withstand legal scrutiny. Two lawyers and two government officials, who requested anonymity, also expressed doubts about the fine's proportionality and whether the NDPR is authoritative enough in such a significant privacy matter.
Additionally, an industry expert criticized the focus on revenue, questioning the true cost of the $220 million fine. If WhatsApp halts its operations due to these demands, the FCCPC and the Nigerian government will provide an answer to these concerns.