Why WhatsApp Threatened To Leave Nigeria Over FCCPC’s Demands, $220m Fine

WhatsApp has threatened to leave Nigeria due to a $220 million fine from the Federal Competition and Consumer Protection Commission (FCCPC).

The $220 million fine and other FCCPC demands are prompting WhatsApp Messenger to consider exiting the country.

Last week, the FCCPC fined WhatsApp for violating data privacy and ordered it to stop sharing user data with Facebook and third parties without explicit consent.

They also directed WhatsApp to improve transparency about data collection and give users more control over their data.

Tech Cabal reported that these demands could lead to WhatsApp suspending operations in Nigeria.

Four sources said Meta, WhatsApp’s parent company, is considering withdrawing some services in the country.

A WhatsApp spokesperson told Tech Cabal, “We want to be really clear that technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally.

“This order contains multiple inaccuracies and misrepresents how WhatsApp works. It 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.”

Meta hasn’t responded to claims that WhatsApp didn’t allow users to opt out of the 2021 policy.

They insist that the sharing of user data wasn’t part of the 2021 Privacy Policy update and that keeping such records for two billion users poses privacy and security risks.

If WhatsApp stops operating in Nigeria, it would greatly impact individuals and small businesses that rely on WhatsApp, Instagram, and Facebook to reach customers.

In a post on X (formerly Twitter), the FCCPC said WhatsApp discriminated against Nigerian users and abused its market position with unfair privacy policies.

The Consumer Protection Commission stated that the order is a step toward a fair digital market in Nigeria.

They described Meta’s threat to exit Nigeria in response to the $220 million fine as an attempt to influence public opinion and pressure the commission into reevaluating its decision.

The statement read, “WhatsApp’s claim that it may be forced to exit Nigeria due to FCCPC’s recent order appears to be a strategic move aimed at influencing public opinion and potentially pressuring the FCCPC to reconsider its decision.

“The FCCPC investigated Meta Platforms and WhatsApp (jointly referred to as “Meta Parties”) for allegedly violating the Federal Competition and Consumer Protection Act and the Nigeria Data Protection Regulation.

“The Commission found that Meta Parties engaged in multiple and repeated infringements of the FCCPA and the NDPR.

“These infringements included denying Nigerians the right to control their personal data, transferring and sharing Nigerian user data without authorisation, discriminating against Nigerian users compared to users in other jurisdictions and abusing their dominant market position by forcing unfair privacy policies.”

It added that, “The final order requires Meta Parties to take steps to comply with Nigerian law, stop exploiting Nigerian consumers, change their practices to meet Nigerian standards and respect consumer rights.

“To deter future violations and ensure accountability for the alleged infringements the FCCPC also imposed a monetary penalty of $220m.

“The FCCPC’s actions are based on legitimate concerns about consumer protection and data privacy and the order is a positive step towards a fairer digital market in Nigeria. Similar measures are taken in other jurisdictions without forcing companies to leave the market. The case of Nigeria will not be different,” the statement concluded.

KanyiDaily recalls that the FCCPC had previously sealed a Chinese supermarket in Abuja, Royal Choice, for reportedly refusing to serve Nigerian customers.