WhatsApp has indicated that it may suspend its operations in Nigeria following a $220 million fine imposed by the Federal Competition and Consumer Protection Commission for a data privacy breach, amid additional regulatory demands.
Sources close to the situation indicate that Meta, WhatsApp’s parent company, is contemplating withdrawing certain services from Nigeria.
The FCCPC has ordered WhatsApp to stop sharing user data with other Facebook companies and third parties without express user consent in addition to the significant fine. Additionally, the commission mandates that WhatsApp improve user control over data usage and reveal information about its data collection procedures.
In response, a WhatsApp spokesperson emailed TechCabal, “We want to be clear that, technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally.” The spokesperson criticized the FCCPC’s order as flawed, asserting that it inaccurately portrays WhatsApp’s data handling and would necessitate significant changes to the platform’s infrastructure.
Meta has not addressed the FCCPC’s allegations regarding user opt-out options from the 2021 privacy policy but maintains that the update does not involve sharing user data. The company’s privacy policy states, “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.”
People and small businesses in Nigeria may suffer greatly if WhatsApp is suspended. A large number of them depend on Facebook, Instagram, and WhatsApp to engage with customers.
The FCCPC’s use of the National Data Protection Regulation as the basis for the fine has drawn criticism from certain privacy attorneys. The National Information Technology Development Agency enacted the NDPR in 2019, which serves as Nigeria’s main data protection legislation. Two anonymous attorneys have questioned whether a government regulation can be considered definitive in privacy matters and have cast doubt on the NDPR’s authority in such a high-stakes case.
Two unidentified government officials have also expressed doubts regarding the $220 million fine’s fairness. “We focus too much on revenue. An industry expert asked, “What is the opportunity cost of $220 million in government coffers?”
In the event that WhatsApp decides to cease operations in Nigeria as a result of these demands, the Nigerian government and the FCCPC will be subject to intense scrutiny and repercussions.
