One week after Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) imposed a $220 million fine on WhatsApp for data privacy violations, the situation has escalated. The FCCPC’s additional demands could potentially lead to WhatsApp suspending operations in the country. At least four insiders have confirmed that Meta is contemplating “withdrawing certain services” in Nigeria.
In addition to the substantial fine, the FCCPC has ordered WhatsApp to cease sharing user data with other Facebook companies and third parties without explicit user consent. WhatsApp must also provide detailed information on data collection practices and restore user control over data usage.
A WhatsApp spokesperson said, “Technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally. This order contains multiple inaccuracies and misrepresents how WhatsApp works. We are urgently appealing the order to avoid any impact on users.”
Meta insists that its January 2021 Privacy Policy update does not include sharing user data and emphasizes the security and privacy risks of storing information for two billion users.
If WhatsApp ceases operations in Nigeria, the consequences for individuals and small business owners could be severe. Many SMEs depend on WhatsApp, Instagram, and Facebook to connect with their target customers.
Three privacy lawyers have 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), the NDPR is Nigeria’s primary data protection framework. However, two lawyers suggest that the NDPR may not withstand scrutiny in court, questioning its authority in such significant privacy matters.
While Meta is undoubtedly subject to regulatory oversight, the proportionality of the $220 million fine is under scrutiny. Two government figures, who requested anonymity, commented on the fine’s potential revenue focus, asking, “What is the opportunity cost of $220 million in government coffers?”
If WhatsApp ceases operations in Nigeria over these demands, the FCCPC and the Nigerian government will face significant repercussions. The potential suspension underscores the need for a balanced approach to data privacy regulations that considers both user protection and the operational realities of tech companies.