Due to the demands of a $220 million fine from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) on WhatsApp for breaching Data Privacy laws, reports suggest that WhatsApp may consider stopping its operations in the country just one week after the imposition. Multiple sources familiar with the matter have indicated that Meta, WhatsApp’s parent company, is contemplating discontinuing some services in the country. FCCPC not only imposed a large fine but demanded that WhatsApp stop sharing user data with other Facebook firms and third parties unless explicit consent is given.
Additionally, the Social Media platform must disclose data collection details and allow users to regain control over how their data is utilised. The spokesman for the company stated that due to technical limitations, it is infeasible to offer WhatsApp services in the country or worldwide as mandated by the order. According to the statement, errors are present in this order, distorting WhatsApp’s functionality. The app depends on a small amount of data to operate efficiently and ensure user security. Meta’s Infrastructure is essential for providing WhatsApp both in the country and around the world.
SMEs rely on the app to advertise and connect with their target customers.
As stated in the announcement, they are making an urgent appeal against the order to prevent any user disruption. However, Meta stayed silent regarding the FCCPC’s allegation that WhatsApp did not allow users to decline the 2021 policy. Despite this, Meta maintained that the Privacy Policy update from January 2021 does not involve sharing user data. The privacy policy states that mobile carriers and operators have typically retained this data, but they are hesitant to store records for two billion users due to concerns about privacy and Security risks, so they choose not to do so.
The potential shutdown of the app in the country could have a negative impact on individuals and small businesses. Many small and medium-sized enterprises (SMEs) rely on WhatsApp, Instagram, and Facebook as vital tools for connecting with their desired customers. The FCCPC’s mention of the National Data Protection Regulation (NDPR) as the reason for the fine was contested by three privacy attorneys. The NDPR was established in 2019 by the National Information Technology Development Agency (NITDA), which serves as the nation’s main data protection system.
Its exit may reduce digital access, especially in rural areas nationwide.
According to two anonymous lawyers, the NDPR may not hold up in court, and they question the authority of government regulations in matters as important as privacy. Also, Two anonymous government officials who chose not to disclose their identity said that the fairness of the $220 million fine imposed by the FCCPC on Meta is being scrutinised, despite the company being under regulatory supervision. If the firm decides to stop operating in the country, it would cost the government $220 million in lost revenue, according to an expert in the industry. The FCCPC and the federal government would be forced to reckon with the consequences of such a decision.
A potential exit of the app could affect the country’s Digital Economy as the app is crucial for daily communication, business transactions, and social interactions, and its absence would disrupt many aspects of people’s lives. Small businesses, in particular, rely on the app for customer engagement and operations. The ripple effects on other digital services and platforms could also be substantial, leading to declining digital connectivity, especially in rural areas where the app is often the primary means of internet communication.
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Alternatives such as Telegram and local messaging apps could emerge as potential replacements for its users in the country and businesses. However, these alternatives may only partially replicate the app’s extensive features and user base, posing challenges in terms of reach and functionality. The federal government might respond to this shift by implementing regulatory changes, supporting local tech solutions, or offering incentives to attract other international tech firms. Such measures would mitigate the impact and ensure continuity in digital services.