See why WhatsApp is thinking of leaving Nigeria after federal government action

3 months ago 7

The Federal Competition and Consumer Protection Commission has addressed reports that WhatsApp might leave Nigeria
The Commission stressed the government's commitment to creating a supportive environment for tech companies
Although there is no official statement, reports claim that WhatsApp could consider exiting due to the N200 million fine

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Federal Competition and Consumer Protection Commission (FCCPC) has responded to recent reports suggesting that WhatsApp, the popular messaging platform owned by Meta, could exit the Nigerian market over $220 million fine for alleged data privacy violations.

Reports quoting WhatsApp spokesman claimed the fine is too hefty and would be impossible to provide WhatsApp in Nigeria or globally.

FCCPC reacts to the reports

Defending its decision, In a statement shared on the X, the commission described the fine on WhatsApp and its parent company, Meta Platforms Incorporated, as a positive step towards a fairer digital market in Nigeria.

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The FCCPC also stated that any claim by WhatsApp that it may be forced to exit Nigeria due to the recent order appears to be a strategic move aimed at influencing public opinion and potentially pressuring the FCCPC to reconsider its decision.

The Commission disclosed that the investigation concluded that Meta Platforms had engaged in conduct constituting ongoing infringements of Nigeria’s consumer protection and data laws over an extended period.

Part of the message reads:

WhatsApp's assertion that it may be forced to exit Nigeria due to the FCCPC's recent order seems to be a strategic move to sway public opinion and pressure the FCCPC to reconsider. "The FCCPC investigated Meta Platforms and WhatsApp (collectively known as "Meta Parties") for allegedly violating the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR)."

FCCPC listed some of its concerns on WhatsApp

Denying Nigerians control over their personal data.
Transferring and sharing Nigerian user data without authorization.
Discriminating against Nigerian users compared to those in other jurisdictions.
Abusing their dominant market position by enforcing unfair privacy policies.

FCCPC added:

"The final order requires Meta Parties to take steps to comply with Nigerian law, stop exploiting Nigerian consumers, change their practices to meet Nigerian standards and respect consumer rights."To deter future violations and ensure accountability for the alleged infringements the FCCPC also imposed a monetary penalty of $220 million. "

Whatsapp takes action

The decision by the FCCPC to fine has been appealed by WhatsApp and Meta Platforms’ legal team.

They argued that the FCCPC denied them a fair hearing by imposing a hefty penalty without allowing them to understand the basis for the penalty calculation and to respond to it.

However, FCCPC maintained that it investigated Meta Platforms and WhatsApp jointly and that its orders were legitimate and have also been applied by other countries where WhatsApp and Meta operate.

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.”

FG fines Facebook, Instagram, WhatsApp $220 million

In another development, Legit.ng earlier reported that the Federal Competition and Consumer Protection Commission (FCCPC) slammed Meta with a $220 million fine for a data breach.

The FCCPC disclosed that the company was fined after a 38-month-long investigation.

It said it found the company guilty of denying Nigerian data subjects the right to self-determine, unauthorised transfer and sharing of data.

Source: Legit.ng

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