WhatsApp may withdraw its services from Nigeria due to increasing regulatory demands, just one week after being fined $220 million by the Federal Competition and Consumer Protection Commission (FCCPC) for a data privacy breach.
Sources close to the situation reveal that Meta, WhatsApp’s parent company, is considering suspending certain services in Nigeria amid regulatory pressure.
The FCCPC has ordered WhatsApp to stop sharing user data with other Facebook companies and third parties without explicit user consent. The commission also requires WhatsApp to disclose details about its data collection practices and enhance user control over data usage.
A WhatsApp spokesperson criticized the FCCPC’s order as flawed, stating that it inaccurately portrays WhatsApp’s data handling and would necessitate significant changes to the platform’s infrastructure. The spokesperson emphasized, “We want to be clear that, technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally.”
Meta has not addressed the FCCPC’s allegations regarding 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 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.
The potential suspension of WhatsApp could have significant repercussions for 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 use of the National Data Protection Regulation (NDPR) as the foundation for the fine. Two unnamed lawyers have expressed doubts about the NDPR’s authority in such a high-stakes matter and questioned whether a government regulation can be deemed definitive in privacy issues.
Two unnamed government officials have raised concerns about the fairness of the $220 million fine, suggesting that the focus on revenue may be misplaced. An industry expert questioned, “We are too revenue-focused. 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.
