WhatsApp Says $220m Fine Could Disrupt Its Services in Nigeria
WhatsApp LLC has warned that the recent tribunal ruling affirming the authority of Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) to fine it and its parent company, Meta Platforms, could impact its ability to operate within the country.
In a statement released on Sunday, WhatsApp stressed that its services are deeply tied to Meta’s infrastructure, making it challenging to function independently. “WhatsApp relies on limited data to deliver its services and ensure user safety. Without Meta’s infrastructure, it would be impossible to operate in Nigeria or anywhere else globally,” the company said, adding that it would urgently seek a stay of the order and file an appeal to prevent disruption to users.
The warning follows a decision by the Competition and Consumer Protection Tribunal, led by Hon. Thomas Okosun, which upheld the FCCPC’s findings against Meta and WhatsApp. The tribunal backed the FCCPC’s July 19, 2024, order and imposed a $220 million fine alongside $35,000 to cover investigative costs.
The case stemmed from a lengthy 38-month probe conducted jointly by the FCCPC and the Nigeria Data Protection Commission (NDPC), beginning in 2020, which scrutinized Meta and WhatsApp’s practices regarding competition and data privacy.
Despite Meta and WhatsApp challenging the FCCPC’s authority and investigative process, the tribunal dismissed most of their arguments. It ruled that the FCCPC had acted within its constitutional and legal powers, particularly under the Federal Competition and Consumer Protection Act (FCCPA), and had provided the companies with a fair hearing.
One of the central disputes – whether the FCCPC could regulate data privacy issues – was resolved in the commission’s favor. The tribunal affirmed that the FCCPC’s consumer protection mandate extends into areas involving personal data.
While the tribunal invalidated one part of the FCCPC’s final order (Order 7) for lacking a strong legal foundation, it upheld the majority of the commission’s conclusions, including that Meta’s privacy policies violated Nigerian law.
Reacting to the verdict, FCCPC Executive Vice Chairman/CEO, Tunji Bello, hailed it as a landmark achievement for regulatory oversight in Nigeria. He praised the commission’s legal team for their efforts and reaffirmed the FCCPC’s commitment to protecting consumers and fostering fair competition under President Bola Tinubu’s Renewed Hope Agenda.
Although WhatsApp reaffirmed its commitment to serving users in Nigeria, it cautioned that its ability to comply with the FCCPC’s directives — without Meta’s infrastructure — could significantly disrupt its services.
With WhatsApp pushing to appeal the decision, a prolonged legal battle appears inevitable, one that could redefine the relationship between Nigerian regulators and global technology companies.
