WhatsApp is considering halting its services in Nigeria following a significant $220 million fine from the federal government under President Bola Ahmed Tinubu for violating data privacy regulations.
The Federal Competition and Consumer Protection Commission (FCCPC) announced on July 23, 2024, a $200 million penalty against Meta Platforms Inc. and WhatsApp LLC for discriminatory practices and sanctionable offenses. Dr. Adamu Abdullahi, the Commission’s acting Executive Vice Chairman, revealed at a news conference in Abuja that the fine was the result of three years of rigorous investigation.
Abdullahi stated that the companies were guilty of denying Nigerians the right to control their data, transferring, and sharing personal information without consent, unlike their practices in other regions. He emphasized that in other regions, users were given the choice to decide whether their data could be shared.
The FCCPC has also demanded that WhatsApp improve transparency regarding its data collection methods and give users more control over their data. However, sources close to Meta indicated on August 1, 2024, that the increasing regulatory pressure might lead to the withdrawal of some services from Nigeria.
In addition to the hefty fine, the FCCPC has ordered WhatsApp to stop sharing user data with Facebook entities and third parties without clear user consent. A WhatsApp spokesperson criticized the FCCPC’s directive as misleading and disruptive, arguing that complying with the order would make it impossible to provide WhatsApp in Nigeria or globally.
Meta has defended its data handling practices, stating that their 2021 privacy policy update does not involve sharing user data. They argued that storing such data for two billion users would pose significant privacy and security risks.
A potential exit from Nigeria could severely impact individuals and small businesses relying on WhatsApp, Instagram, and Facebook for customer interactions. Some privacy lawyers have questioned the FCCPC’s use of the National Data Protection Regulation (NDPR) as the basis for the fine, while unnamed government officials and legal experts have expressed doubts about the NDPR’s authority and the fairness of the $220 million fine.
One industry expert criticized the government’s revenue-focused approach, questioning the opportunity cost of the $220 million fine.
