- The FCCPC has fined WhatsApp $220 million
- This has led to speculations that the messaging app may stop operating in Nigeria
- Backlash is expected from Nigerians if the speculation action materialises
The Federal Competition and Consumer Protection Commission (FCCPC) has fined WhatsApp $220 million for a data privacy breach. As a result, the messaging app may halt its operations in the country due to additional regulatory requirements.
According to insiders, Meta, the parent company of WhatsApp, is considering scaling back some services in Nigeria. The FCCPC has not only levied a hefty fine but also mandated that WhatsApp stop sharing user data with other Facebook-affiliated companies and third parties without explicit user consent. The commission further requires the company to disclose its data collection practices and enhance user control over data usage.
In a statement to TechCabal, a WhatsApp spokesperson expressed concerns, stating, "Technically, complying with the order would make it impossible to offer WhatsApp in Nigeria or globally." The spokesperson criticized the FCCPC’s order as flawed, arguing that it misrepresents WhatsApp’s data management and would necessitate major changes to the platform’s infrastructure.
Meta has not specifically addressed the FCCPC’s claims regarding the lack of opt-out options from the 2021 privacy policy update. However, the company insists that the update does not entail sharing user data, and its privacy policy states, “Traditionally, mobile carriers and operators store this information. We believe storing records for two billion users poses privacy and security risks, so we don't do it.”
The potential suspension of WhatsApp could significantly impact Nigerians, especially individuals and small businesses that depend on WhatsApp, Instagram, and Facebook for communication and customer engagement.
Some privacy lawyers have questioned the FCCPC’s reliance on the National Data Protection Regulation (NDPR) as the basis for the fine. The NDPR, established by the National Information Technology Development Agency in 2019, is Nigeria's primary data protection framework. Two unnamed lawyers have expressed doubts about the NDPR’s authority in such a high-profile case and questioned the sufficiency of government regulation in addressing privacy issues.
Additionally, two unnamed government officials have voiced concerns about the fairness of the $220 million fine. An industry expert noted, “We are too focused on revenue. What is the opportunity cost of $220 million in government coffers?”
If WhatsApp decides to cease operations in Nigeria due to these regulatory demands, both the FCCPC and the Nigerian government could face significant backlash and repercussions.
Meta to cut metaverse budget by 20%
Meanwhile, TheRadar earlier reported that Meta, the parent company of Facebook, Instagram, and WhatsApp had announced plans to cut its budget for metaverse by 20%.
According to Bank of America analysts Justin Post and Nitin Bansal, Meta would save roughly $3 billion as a result of the cost-cutting measures.
