A week after the Federal Competition and Consumer Protection Commission (FCCPC) imposed a $220 million fine on WhatsApp for data privacy breaches, the Meta-owned messaging platform is contemplating suspending its operations in Nigeria in response to heightened regulatory demands.
As reported by PUNCH, the FCCPC’s directive not only mandates the hefty fine but also instructs WhatsApp to stop sharing user data with Facebook and third parties without explicit user consent. Additionally, the commission requires WhatsApp to disclose its data collection practices and enhance user control over data usage.
Sources indicate that Meta, WhatsApp’s parent company, is considering scaling back some services in Nigeria.
A WhatsApp spokesperson told TechCabal via email, “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, claiming it misrepresents WhatsApp’s data handling practices and would necessitate significant infrastructure changes.
Meta has yet to address the FCCPC’s concerns about user opt-out options from the 2021 privacy policy, maintaining that the update does not involve sharing user data. According to the company’s privacy policy, “While traditionally mobile carriers and operators store this information, we believe that keeping these records for two billion users would pose both privacy and security risks, and we do not do it.”
The potential suspension of WhatsApp could have a profound impact on individuals and small businesses in Nigeria, many of whom rely on WhatsApp, Instagram, and Facebook for customer engagement.
Some privacy lawyers have questioned the FCCPC’s reliance on the National Data Protection Regulation (NDPR) as the basis for the fine. Enacted in 2019 by the National Information Technology Development Agency, the NDPR is Nigeria’s primary data protection framework. Two unnamed lawyers have expressed doubts about the NDPR’s authority in such a significant matter and whether a government regulation can be definitive in privacy issues.
Furthermore, two unnamed government officials have raised concerns about the fairness of the $220 million fine, with one industry expert questioning, “What is the opportunity cost of $220 million in government coffers?”
If WhatsApp decides to halt its operations in Nigeria due to these regulatory demands, both the FCCPC and the Nigerian government will face considerable scrutiny and potential consequences.
