WhatsApp Faces Potential Suspension in Nigeria Following FCCPC Fine

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One week after Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) fined WhatsApp $220 million for a data privacy violation, additional demands from the commission may lead to the social media giant suspending its operations in the country. According to at least four sources familiar with the situation, Meta, WhatsApp's parent company, is considering "withdrawing certain services" in Nigeria.

The FCCPC's demands include prohibiting WhatsApp from sharing user data with other Facebook companies and third parties without explicit consent. Additionally, WhatsApp must provide detailed information about its data collection practices and restore user control over data usage. 

“We want to be really clear that technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally,” a WhatsApp spokesperson told TechCabal via email. “This order contains multiple inaccuracies and misrepresents how WhatsApp works. WhatsApp 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,” the statement added.

Meta has not commented on the FCCPC’s claim that WhatsApp does not allow users to opt out of its 2021 privacy policy update. However, it insists that this update does not include sharing user data. “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 privacy document reads.

If WhatsApp ceases operations in Nigeria, the impact would be significant for individuals and small business owners. Many SMEs rely on WhatsApp, Instagram, and Facebook to reach their target customers.

Three privacy lawyers have questioned the FCCPC’s reference to the National Data Protection Regulation (NDPR) as the basis for the fine. Enacted in 2019 by the National Information Technology Development Agency (NITDA), the NDPR is Nigeria's primary data protection framework. Two lawyers, speaking anonymously, expressed doubts about the NDPR's ability to withstand scrutiny in court and questioned whether a government regulation could be authoritative in such a significant matter as privacy.

While Meta is subject to regulatory oversight, the proportionality of the $220 million fine levied by the FCCPC is also under question. Two government figures, who requested anonymity, argued that the focus on revenue might overlook broader implications. “We are too revenue-focused. What is the opportunity cost of $220 million in government coffers?” an industry expert asked.

Should WhatsApp cease operations in Nigeria over these demands, the FCCPC and the Nigerian government will have to face the significant fallout, potentially disrupting communication and commerce for millions of users across the country.