Meta’s threat to leave the nation in response to the $220 million punishment has been regarded by the Federal Competition and Consumer Protection Commission (FCCPC) as an attempt to sway public opinion and pressure the commission to reconsider its ruling.
It confirmed that the decision to penalise Meta Platforms Inc.—the company behind Facebook, Instagram, and WhatsApp—was based on justifiable worries about consumer protection and data privacy practices that went outside established legal frameworks.
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FCCPC’s $220M fine on Meta
WhatsApp was ordered by the FCCPC last week to cease exchanging user data with Facebook subsidiaries and other parties without the user’s express authorisation, disclose data-collecting practices, and give users back control over how their data is used.
After a thorough 38-month examination of Meta’s data privacy procedures and market conduct, the commission found that Meta had repeatedly violated both the Nigeria Data Protection Regulation and the Federal Competition and Consumer Protection Act.
Consequently, it punished the parent business with $220 million for engaging in discriminatory activities against Nigerian users and unauthorisedly obtaining personal data without user consent.
Understanding the Fine’s Impact on WhatsApp Services
Even though the decision has been appealed, WhatsApp released a statement to the press on Thursday stating that the fine could impact the messaging platform’s services nationwide.
This is because WhatsApp’s operation and user security rely on the parent company’s restricted data infrastructure.
“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,” the WhatsApp spokesman stated in the response.
“To prevent any negative effects on users, we are immediately appealing this order, which contains numerous errors and misrepresents how WhatsApp operates.”
WhatsApp vs. FCCPC: A Regulatory Tug of War
However, the Consumer Protection Commission responded late on Thursday night in a post on X (previously Twitter), alleging that the company discriminated against users in Nigeria compared to users in other jurisdictions and used its dominant market position by enforcing unjust privacy standards.
The order, it continued, is a step in the right direction towards a just digital market in Nigeria.
The statement said, “WhatsApp’s assertion that it would have to leave Nigeria due to the FCCPC’s recent order seems to be a calculated action meant to sway public opinion and possibly pressure the FCCPC to reevaluate its decision.
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Ensuring Compliance with Nigeria Data Protection Regulation
The Nigeria Data Protection Regulation and the Federal Competition and Consumer Protection Act were purportedly broken by Meta Platforms and WhatsApp (collectively called the “Meta Parties”), and the FCCPC looked into these claims.
According to the Commission’s findings, meta parties repeatedly violated the FCCPA and the NDPR.
“These infringements included discriminating against Nigerian users compared to users in other jurisdictions, transferring and sharing data about Nigerian users without authorisation, denying Nigerians the right to control their data, and abusing their dominant market position by enforcing unfair privacy policies.”
According to the appended statement, the final ruling mandates that Meta Parties stop abusing Nigerian consumers, adjust their business methods to conform to Nigerian regulations and respect their rights.
“The FCCPC also imposed a $220 million financial penalty to ensure accountability for the alleged infringements and deter future violations.”
“The FCCPC’s measures stem from justifiable worries about data privacy and consumer protection, and the order is a move in the right direction towards a more equitable digital market in Nigeria. Other legal systems implement similar policies without compelling businesses to exit the market. Nigeria’s situation won’t be any different, the statement said in closing.
