Why  FCCPC’s $220 Million Demand Might Force WhatsApp out of Nigeria

WhatsApp, a pivotal communication tool for millions, stands at a crossroads in Nigeria due to stringent demands from the Federal Competition and Consumer Protection Commission (FCCPC). 

Last week, the FCCPC hit WhatsApp with a whopping $220 million fine over breaches in data privacy. 

But it didn’t stop there. The commission’s additional requirements are now threatening WhatsApp’s very operation in Nigeria.  What are these demands, and why could they push WhatsApp to exit one of its largest markets?

Why FCCPC is demanding

The FCCPC is demanding that WhatsApp cease sharing user data with other entities within the Facebook family and third parties without explicit consent from users. 

This directive challenges the core operations of WhatsApp, which, according to a spokesperson from the platform, relies on limited data sharing to run efficiently and ensure user safety.

According to a WhatsApp spokesperson, “Technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally.” 

According to WhatsApp, the FCCPC’s order contains numerous inaccuracies that misrepresent how the platform functions. 

For instance, Meta, the parent company of WhatsApp, insists that its January 2021 Privacy Policy update doesn’t involve sharing user data as claimed.

“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,” explains the privacy document from WhatsApp.

This situation has not only put WhatsApp in a tough spot but also sparked a legal debate among experts. Three privacy lawyers have challenged the FCCPC’s use of the National Data Protection Regulation (NDPR) to justify the fine. 

Enacted in 2019, the NDPR aims to protect personal data yet, according to two lawyers (who preferred anonymity), may not withstand rigorous legal scrutiny in this context.

What this could mean for Nigeria

The implications of WhatsApp pulling out of Nigeria are vast. Countless small and medium-sized enterprises (SMEs) rely on WhatsApp, along with Instagram and Facebook, to connect with customers. Losing WhatsApp could stifle the reach of these businesses, affecting their operations and profitability.

Furthermore, some government insiders and industry experts question the proportionality of the $220 million fine. 

“We are too revenue-focused. What is the opportunity cost of $220 million in government coffers?” one industry expert pondered, suggesting that the fine might be more about generating revenue than protecting privacy.