WhatsApp's Exit Warning: FCCPC Remains Resolute on Fine

WhatsApp threatens to leave Nigeria over $220m fine, FCCPC responds...

Nigeria's FCCPC fines WhatsApp and Meta $220 million for data violations and discriminatory practices, sparking appeals and debate on digital market regulation.

The Federal Competition and Consumer Protection Commission (FCCPC) has reaffirmed its commitment to creating a fair digital market in Nigeria, following its recent $220 million fine on WhatsApp and its parent company, Meta Platforms Inc.

In a statement on its X page on Thursday, August 1, the FCCPC addressed social media giants operating in Nigeria, emphasizing its resolve to promote a level playing field. The commission dismissed WhatsApp's threat to exit the Nigerian market as a mere tactic to sway public opinion and pressure the FCCPC into reversing its decision.

The FCCPC, a regulatory agency under the Federal Ministry of Industry, Trade, and Investment (FMITI), imposed the hefty fine on Meta Platforms for alleged discriminatory practices against Nigerian users and data violations. The commission remains steadfast in its stance, ensuring that tech giants operate within the bounds of Nigerian laws and regulations.

In their appeal, Meta Platforms and WhatsApp further argued that implementing a consent mechanism for each data point used by Nigerian consumers, as mandated by the FCCPC, would be prohibitively costly and burdensome.

The FCCPC clarified on its X page that its investigation and subsequent fine were based on Meta Platforms' and WhatsApp's violations of the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR), highlighting the companies' failure to comply with Nigeria's data protection and consumer protection laws.

The FCCPC's investigation uncovered numerous and recurring violations of Nigeria's data protection and consumer protection laws by Meta Platforms, leading to the imposition of a $220 million fine to deter future non-compliance and ensure accountability.

The Commission justified its actions as legitimate and consistent with regulatory measures taken by other countries where WhatsApp and Meta operate, underscoring its commitment to enforcing Nigeria's laws and protecting consumers' rights.

An investigation by the Federal Competition and Consumer Protection Commission (FCCPC) revealed that Meta Platforms had consistently flouted Nigeria's consumer protection and data privacy laws over an extended period.

Meta Platforms and WhatsApp have challenged the FCCPC's decision, filing an appeal against the $220 million fine. In their appeal, they contend that the FCCPC failed to provide adequate notice and opportunity for them to comprehend and respond to the allegations before imposing the penalty, thereby denying them a fair hearing.

FCCPC added: “The FCCPC's actions are based on legitimate concerns about consumer protection and data privacy, and the order is a positive step toward a fairer digital market in Nigeria. Similar measures are taken in other jurisdictions without forcing companies to leave the market. The case of Nigeria will not be different.”

As of May 2023, Nigeria had approximately 41.6 million Facebook users, accounting for nearly one-fifth (18.5%) of the country's total population, according to data from Statista.

Following the FCCPC's orders, WhatsApp reacted, stating, “In 2021, we went to users globally to explain how talking to businesses, among other things, would work. While there was a lot of confusion then, it has actually proven quite popular.”

Fines like the one imposed on Meta are not unprecedented. In a recent example, the European Data Protection Agency levied a record-breaking €1.2 billion fine against Facebook last year for non-compliance with EU privacy regulations.

The Irish Data Protection Commission found Meta, Facebook's parent company, in violation of the General Data Protection Regulation (GDPR) for transferring vast amounts of personal data from European Facebook users to the United States without sufficient safeguards to protect it from US data surveillance practices.

Luxembourg had previously slapped Amazon with a €746 million fine, while Ireland's regulator imposed multiple fines on Meta's platforms - Facebook, Instagram, and WhatsApp - ranging from €225 million to €405 million between 2021 and 2023.

In the past five years, tech giants Amazon, Meta, and Google have faced significant fines under the European Union's General Data Protection Regulation (GDPR) privacy laws, with some of the largest penalties imposed on these companies. The recent fines and orders against WhatsApp and Meta Platforms will now be contested in court, where their legality will be determined.