$220M Whatsapp Fine: You Most Pay, FCCPC insists As Whatsapp Planning to Exit Nigeria
The Federal Competition and Consumer Protection Commission (FCCPC) has stated that its $220 million penalty on WhatsApp and its parent company, Meta Platforms Incorporated, is a positive step toward a fairer digital market in Nigeria.
FCCPC disclosed this via its X page on August 1, 2024, representing its latest comments on the operation of social media giants in Nigeria.
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.
FCCPC, an agency under the Federal Ministry of Industry, Trade and Investment (FMITI), had imposed a $220 million penalty on Meta Platforms Incorporated over alleged discriminatory practices against Nigerian data and consumers.
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.
The decision by the FCCPC has been appealed by WhatsApp and Meta Platforms’ legal team.
In their appeal, they argued that the FCCPC denied them a fair hearing by imposing a hefty penalty without giving them an opportunity to understand the basis for the penalty calculation and to respond to it.
The appellants further argued that, contrary to the FCCPC’s order on compliance, it would be impossible to identify and build a consent mechanism for each data point processed by Nigerian consumers.
They added that doing so would be “extremely expensive.”
The FCCPC maintained that it investigated Meta Platforms and WhatsApp (jointly referred to as “Meta Parties”) for allegedly violating the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).
The Commission found that the Meta Parties engaged in multiple and repeated infringements of the FCCPA and the NDPR.
It stressed that to deter future violations and ensure accountability for the alleged infringements, the FCCPC also imposed a monetary penalty of $220 million.
The Commission emphasized that its orders are 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.”
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