In a dramatic escalation of tensions, the Federal Competition and Consumer Protection Commission (FCCPC) has responded firmly to Meta’s threat to exit Nigeria following a $220 million fine imposed on the tech giant.
The FCCPC characterized Meta’s response as an attempt to manipulate public opinion and pressure the commission into reconsidering its decision.
The substantial fine, levied against Meta Platforms Inc., the parent company of WhatsApp, Facebook, and Instagram, stems from significant concerns regarding consumer protection and data privacy policies that allegedly contravene Nigerian laws.
The FCCPC emphasized that the decision to fine Meta followed a thorough and lawful investigation.
Last week, the FCCPC issued a directive to WhatsApp, prohibiting the sharing of user data with Facebook companies and third parties without explicit consent.
The commission also mandated that WhatsApp provide detailed information on its data collection practices and reinstate user control over data usage.
This directive and subsequent fine are the results of a comprehensive 38-month investigation into Meta’s data privacy practices and market behavior.
According to the FCCPC, the investigation revealed that Meta engaged in multiple and repeated violations of the Federal Competition and Consumer Protection Act and the Nigeria Data Protection Regulation.
“Meta Platforms Inc. has been found guilty of unauthorized appropriation of personal data without user consent and discriminatory practices against Nigerian users,” the commission stated, justifying the $220 million fine.
In response, Meta has appealed the ruling. WhatsApp, in a message to Nigerian newspaper The PUNCH on Thursday, suggested that the penalty could jeopardize its services in Nigeria.
WhatsApp asserted that it depends on limited data infrastructure provided by its parent company, Meta, to operate effectively and ensure user safety.
A WhatsApp spokesperson, in a written statement, remarked, “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”.
“This order contains multiple inaccuracies and misrepresents how WhatsApp works, and we are urgently appealing the order to avoid any impact on users.”
Meta’s threat to withdraw from Nigeria has sparked significant concern among users and industry stakeholders, given the widespread use of WhatsApp for communication across the country.
The potential disruption of services has prompted a public outcry, with many urging the FCCPC to reconsider its stance to avoid inconveniencing millions of Nigerian users.
However, the FCCPC has remained steadfast in its position, underscoring the importance of upholding consumer protection and data privacy standards.
The commission highlighted that the fine is part of broader efforts to ensure that multinational tech companies adhere to local regulations and respect the rights of Nigerian consumers.
As the appeal process unfolds, the outcome of this high-stakes confrontation between Meta and Nigerian regulators remains uncertain.
What is clear, however, is that the case has set a precedent for how data privacy and consumer protection issues might be handled in Nigeria going forward.
The FCCPC’s determination to enforce its laws against a global tech titan like Meta signals a new era of regulatory vigilance in the country.
