WhatsApp is considering exiting Nigeria due to a hefty $220M fine. Discover the implications of this potential move and what led to it.
After being hit with a substantial $220 million penalty by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) due to a breach of data privacy, WhatsApp is contemplating halting its operations in the nation.
Obasanjonews.com has reported that this is occurring in the midst of increased regulatory requirements from the FCCPC.
Insiders claim that Meta, the parent company of WhatsApp, is considering discontinuing some services in Nigeria.
In addition to imposing a substantial penalty, the FCCPC required WhatsApp to cease sharing user information with other entities owned by Facebook and third parties unless explicit consent is given by the individual.
Read Also: FCCPC Fines Meta $220M Over WhatsApp, Facebook Violations
In addition, WhatsApp has been mandated by the commission to enhance user control over data usage and provide clear disclosure regarding its data collection practices.
In an email to TechCabal, a representative from WhatsApp stated that due to the directive issued by FCCPC, providing access to WhatsApp in Nigeria or anywhere else would be technically unfeasible.
The commission’s order was criticized by the spokesperson, who argued that it contains errors and does not accurately reflect WhatsApp’s approach to managing data. Additionally, they stated that implementing this order would require significant modifications to the platform’s infrastructure.
Despite the FCCPC’s claims about user opt-out choices in the 2021 privacy policy update, Meta has not tackled it. Nevertheless, they maintain that sharing user data is not part of their latest revision. According to Meta’s privacy policy statement, “We have a firm belief that storing information for two billion users could jeopardize both their safety and confidentiality; hence we abstain from doing so.”
The looming suspension of WhatsApp in Nigeria has the potential to considerably affect small businesses and individuals who heavily depend on Instagram, Facebook, and WhatsApp as a means of engaging with customers.
The FCCPC’s use of the National Data Protection Regulation (NDPR) to impose a penalty has been challenged by various privacy attorneys. The NDPR, which was introduced in 2019 by the National Information Technology Development Agency, is Nigeria’s primary data security framework.
There were uncertainties raised by two undisclosed attorneys regarding the NDPR’s jurisdiction in this issue, casting doubt on whether a privacy disagreement involving government regulations can be deemed conclusive.
Furthermore, a couple of government representatives have expressed doubts regarding the justness of imposing a $220 million penalty. “Our focus on generating revenue is excessive. What are we sacrificing by adding $220 million to our national treasury?” inquired an authority in the field.
Should WhatsApp cease its operations in Nigeria as a result of the regulatory demands, both the FCCPC and Nigerian government will be subject to extensive scrutiny and potential repercussions.
