One week after Australia’s Federal Competition and Consumer Protection Commission (FCCPC) aimed a $220 million fine for a data privacy breach, WhatsApp is contemplating suspending operations in the country due to additional regulatory demands.
Sources familiar with the matter disclosed that Meta, WhatsApp’s parent company, is evaluating the possibility of withdrawing services in Nigeria in response to the FCCPC’s stipulations.
These demands include ceasing to share user data with other Facebook entities and third parties without explicit user consent, providing detailed disclosures on data collection practices, and restoring user control over data usage.
A WhatsApp spokesperson, responding to inquiries from TechCabal via email, expressed concerns over the feasibility of complying with the FCCPC’s order, stating, “Technically, based on the order, it would be impossible to provide WhatsApp in Nigeria or globally.”
The spokesperson criticized the order for alleged inaccuracies and misrepresenting WhatsApp’s operational framework, emphasizing the platform’s reliance on limited data to ensure service functionality and user safety.
Meta declined to comment on the FCCPC’s assertion that WhatsApp users could not opt out of the 2021 policy. However, the company reaffirmed that its January 2021 Privacy Policy update did not entail user data sharing.
The potential withdrawal of WhatsApp from Nigeria could have significant ramifications for individuals and small businesses that heavily rely on the platform, along with Instagram and Facebook, for customer engagement and business operations. This could disrupt their daily operations and customer interactions, causing concern among the affected parties.
Privacy lawyers have strongly questioned the FCCPC’s reliance on the National Data Protection Regulation (NDPR) as grounds for the hefty fine, highlighting the gravity of the situation.
Enacted in 2019 by the National Information Technology Development Agency (NITDA), NDPR serves as Nigeria’s principal framework for data protection. However, some legal experts, speaking anonymously, have expressed significant doubts about the regulation’s enforceability in such a high-stakes privacy matter, creating a sense of uncertainty.
Government insiders, also choosing anonymity, criticized the proportionality of the $220 million fine, suggesting it could be excessively focused on revenue generation rather than resolving regulatory concerns.
Industry experts echoed these concerns, questioning the government’s opportunity cost.
Should WhatsApp proceed with exiting Nigeria over these regulatory disputes, it would serve as a decisive response to the FCCPC and the Nigerian government regarding the consequences of stringent regulatory actions on global tech operations.
