The case involving Meta-owned messaging network WhatsApp and Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has taken an intriguing turn.
WhatsApp is reportedly threatening to exit the nation if the FCCPC persists in its demands. These demands include an injunction to restrict WhatsApp from exchanging data with Facebook and other Meta businesses, granting Nigerians control over their data, and providing specific information on the kind of data WhatsApp gathers from individuals.
The Commission made these demands, slamming a $220 million fine, after it claimed that Meta is discriminating against Nigerians, denying them control of their data, and sharing their data with third parties without consent. The FCCPC alleges that WhatsApp violates the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).
WhatsApp is the most popular messaging app in the world and the fourth most popular social media app after Facebook, YouTube, and Instagram. While Nigeria might account for only 3% of WhatsApp’s monthly users, it is the fifth-largest user of WhatsApp Business, the app’s primary source of revenue.
WhatsApp says it will not be able to offer its services in Nigeria based on the FCCPC’s demands, though it has faced similar troubles in other countries and continued to function. According to WhatsApp, Nigerian customers were not pressured into adopting service conditions and could opt out if they so wished, contrary to the FCCPC’s assertions. The company claims that it has not affected Nigerian users’ interests and thus does not need to provide written assurances of rights compliance.
Furthermore, WhatsApp claims that the FCCPC did not provide a fair hearing before imposing the fine, which lacks clarity in its computation. Despite these difficulties, WhatsApp’s comments have been primarily in denial, showing continued disagreements between the FCCPC and Meta.
The result of WhatsApp’s appeal could determine if it will stay in its largest African market or not. An exit could affect communication and small businesses that have built their operations around the platform. WhatsApp appears to be prominent in Nigeria’s digital ecosystem. Meta’s platforms support a substantial portion of Nigeria’s internet activity and generate significant revenue for both Meta and the Nigerian government through ads and taxes. A contraction or withdrawal would have severe economic, social, and technological consequences.
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