WhatsApp is contemplating suspending its services in Nigeria following a substantial $220 million fine imposed by the federal government under President Bola Ahmed Tinubu for data privacy breaches.
Recall that the Federal Competition and Consumer Protection Commission (FCCPC) on July 23, 2024, announced a $200 million fine against Meta Platforms Inc. and WhatsApp LLC based on discriminatory practices and sanctionable offences committed.
The acting Executive Vice Chairman of the Commission, Dr Adamu Abdullahi, who announced the development at a news conference in Abuja on Tuesday, said the penalty was slammed on the companies after three years of intensive investigations.
Abdullahi said the companies were found culpable of denying Nigerian data subjects the right to self-determination, unauthorised transfer and sharing of personal data which was not the practice in other climes.
He said the companies gave options to data subjects in other climes to decide whether their data would be shared or not.
The commission has also required WhatsApp to enhance transparency about its data collection practices and provide users with greater control over their information.
However in a development on Thursday, August 1, 2024, sources close to Meta, WhatsApp’s parent company, suggest that escalating regulatory pressures might lead them to consider withdrawing some of their services from Nigeria.
Besides the hefty fine, the FCCPC has mandated that WhatsApp cease sharing user data with other Facebook entities and third parties without explicit user consent.
In response, a WhatsApp spokesperson told TechCabal that, “Technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally,” criticizing the FCCPC’s directive as misleading and disruptive to the platform’s infrastructure.
The spokesperson further contended that the order misrepresents WhatsApp’s data handling practices and would necessitate substantial changes to the platform.
Meta has not specifically addressed the FCCPC’s concerns related to user opt-out options post-2021 privacy policy update, but maintains that this update does not involve sharing user data.
According to Meta, “While traditionally mobile carriers and operators store this information, we believe that maintaining these records for two billion users would pose significant privacy and security risks, which is why we do not do it.”
A potential exit from Nigeria could have severe repercussions for individuals and small businesses that rely on WhatsApp, Instagram, and Facebook for customer engagement.
Some privacy attorneys have questioned the FCCPC’s application of the National Data Protection Regulation (NDPR) as a basis for the fine. Introduced by the National Information Technology Development Agency in 2019, the NDPR is Nigeria’s primary data protection framework.
Two anonymous legal experts have expressed doubts about the NDPR’s authority in such a major case, while two unnamed government officials have questioned the fairness of the $220 million fine.
“We are too revenue-focused. What is the opportunity cost of $220 million in government coffers?” one industry expert remarked.