WhatsApp is considering pulling out of Nigeria after the Federal Competition and Consumer Protection Commission (FCCPC) imposed a $220 million fine on the company. The fine stems from accusations that WhatsApp violated data privacy laws by sharing user data without explicit consent. The FCCPC demands that the platform halt such practices, which WhatsApp argues is unfeasible and could disrupt its global operations. The company is appealing the decision to avoid service disruptions in Nigeria.
One 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 lead to WhatsApp suspending operations in the country. At least four people familiar with the conversation said Meta was considering “withdrawing certain services” in Nigeria.
In addition to the hefty fine, FCCPC asked WhatsApp to stop sharing user data with other Facebook companies and third parties without explicit consent. The social media platform must also provide information about data collection and restore user control over data usage.
“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.
“This order contains multiple inaccuracies and misrepresents how WhatsApp works. WhatsApp relies on limited data to run our service and keep users safe, and it would be impossible to provide WhatsApp in Nigeria or globally without Meta’s infrastructure. We are urgently appealing the order to avoid any impact on users,” the statement added.
Meta did not comment on the FCCPC’s claim that WhatsApp did not allow users to opt out of the 2021 policy. However, it insisted that its January 2021 Privacy Policy update does not include sharing user data.
“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,” the privacy document reads.
If Whatsapp ceases operations in Nigeria, it will have enormous consequences for individuals and small business owners. Many SMEs rely on WhatsApp, Instagram, and Facebook to reach their target customers.
While Meta is undoubtedly subject to regulatory oversight, the proportionality of the $220 million fine levied by the FCCPC is questionable, two goveurnment figures who asked not to be named said.
“We are too revenue-focused. What is the opportunity cost of $220 million in government coffers?” asked an Industry expert.
