One week after the Federal Competition and Consumer Protection Commission (FCCPC) imposed a $220 million fine on WhatsApp for a data privacy breach, the Meta-owned company is considering suspending its operations in Nigeria due to further regulatory requirements.
According to PUNCH, the FCCPC’s order not only includes the substantial fine but also directs WhatsApp to cease sharing user data with other Facebook companies 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 close to the situation suggest that Meta, WhatsApp’s parent company, is contemplating withdrawing some services from Nigeria.
A WhatsApp spokesperson informed 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, arguing that it inaccurately represents WhatsApp’s data handling practices and would require significant infrastructure changes.
Meta has not yet addressed the FCCPC’s concerns about user opt-out options from the 2021 privacy policy but maintains that the update does not involve sharing user data.
The company’s privacy policy notes, “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.”
A potential suspension of WhatsApp could significantly impact 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.
Additionally, 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?”
Should WhatsApp choose to halt its operations in Nigeria due to these demands, both the FCCPC and the Nigerian government will face significant scrutiny and consequences.