Nigerian Regulator Defends $220M Fine Against WhatsApp, Dismisses Exit Threats

The Federal Competition and Consumer Protection Commission (FCCPC) has firmly dismissed claims that its recent penalty order and $220 million fine on WhatsApp could force the popular messaging platform to exit Nigeria.

This assertion comes in response to reports suggesting that WhatsApp might withdraw some of its services from the country due to the regulatory action.

WhatsApp, a subsidiary of Meta, has indicated that compliance with the FCCPC’s order would be technically impossible, potentially impacting its operations not just in Nigeria but globally.

A spokesperson for WhatsApp stated, “We want to be really clear that technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally.”

The FCCPC, however, has characterized WhatsApp’s statements as an attempt to influence public opinion and exert pressure on the commission to reconsider its decision.

The regulator emphasized that its actions are rooted in legitimate consumer protection and data privacy concerns, aiming to ensure that Nigerian consumers’ rights are safeguarded.

The $220 million fine stems from a 38-month investigation conducted jointly by the FCCPC and the Nigeria Data Protection Commission (NDPC).

The investigation concluded that Meta was guilty of several violations, including unauthorized transfer and sharing of Nigerians’ data, abuse of dominance, and failure to allow Nigerians the right to self-determine their data.

“The decision was made following a thorough investigation and is based on solid grounds of consumer protection and data privacy. Similar measures are taken in other jurisdictions without forcing companies to leave the market. The case of Nigeria will not be different,” the FCCPC stated.

Meta, currently appealing its largest fine in Africa, has cited 22 reasons for contesting the decision, including allegations of vague directives, unjustifiable data-sharing orders, and procedural errors.

Despite these contentions, the FCCPC remains steadfast in its decision, underscoring the importance of upholding local standards for data privacy and consumer rights.

Babatunde Irukera, the former chairman of the FCCPC, highlighted the global context of Meta’s regulatory challenges. On the social media platform X, he noted, “The same company just settled a Texas case for $1.4 billion and is currently facing regulatory action in at least a dozen nations, appealing large penalties in several countries. How many has it threatened to exit?”

As of February 2024, approximately 51 million Nigerians were using WhatsApp, underscoring the platform’s significant presence in the country.

The FCCPC’s firm stance indicates a broader effort to ensure that international tech companies comply with Nigerian laws and standards, particularly concerning data privacy and consumer protection.

The FCCPC’s actions are part of a growing trend of regulatory scrutiny faced by tech giants worldwide. The commission has reiterated its commitment to protecting Nigerian consumers and ensuring that companies operating within the country adhere to the highest standards of transparency and accountability.