WhatsApp is contemplating halting its operations in Nigeria following a $220 million fine levied by the Federal Competition and Consumer Protection Commission (FCCPC) for data privacy breaches.
Sources within Meta, WhatsApp’s parent company, indicate that the company is considering withdrawing some services due to mounting regulatory challenges.
The FCCPC has not only imposed the substantial fine but also mandated that WhatsApp cease sharing user data with other Facebook entities and third parties without explicit user consent. Additionally, the commission demands greater transparency regarding WhatsApp’s data collection practices and improved user control over their data.
In a statement to TechCabal, a WhatsApp spokesperson commented, “Technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally.” The spokesperson criticized the FCCPC’s order as misleading, asserting it misrepresents WhatsApp’s data practices and would require significant infrastructure changes.
Although Meta has not directly addressed the FCCPC’s concerns regarding user opt-out options following the 2021 privacy policy update, the company maintains that this update does not involve sharing user data. Meta’s privacy policy states, “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.”
A potential withdrawal of WhatsApp from Nigeria could severely impact individuals and small businesses reliant on WhatsApp, Instagram, and Facebook for customer interactions.
Some privacy attorneys have questioned the FCCPC’s application of the National Data Protection Regulation (NDPR) as the basis for the fine. The NDPR, introduced by the National Information Technology Development Agency in 2019, serves as Nigeria’s main data protection framework.
Two anonymous lawyers have expressed skepticism about the NDPR’s legal authority in such a significant case, questioning whether a government regulation can be definitive in privacy matters. Additionally, two unnamed government officials have raised concerns about the fairness of the $220 million fine, with one industry expert questioning the opportunity cost of such a substantial amount in government revenue.
News Editor