Three years after initiating an investigation into WhatsApp LLC and its parent company Meta for allegedly failing to obtain user consent for data collection, Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) has imposed a substantial fine.
The Fine and Regulatory Context
“The Final order also imposes a monetary penalty of Two Hundred and Twenty Million U.S. Dollars only ($220,000,000.00) (at prevailing exchange rate where applicable) which penalty is in accordance with the FCCPA 2018, and the Federal Competition and Consumer Protection (Administrative Penalties) Regulations 2020 (APR),” said the FCCPC in a statement shared on X.
Meta’s Response and Planned Appeal
Meta has strongly disagreed with the FCCPC’s judgment and the fine. A spokesperson for Meta stated, “In 2021, we went to users globally to explain how talking to businesses, among other things, would work, and while there was a lot of confusion then, it’s actually proven quite popular. We disagree with the decision today as well as the fine, and we are appealing the decision.”
The company disputes the central claim that it engaged in abusive and invasive practices against data subjects in Nigeria. Meta maintains that protecting user information and giving individuals control over their data is a top priority.
Regulatory Findings
The FCCPC, in collaboration with the National Data Protection Commission, found Meta engaged in “multiple and repeated, as well as continuing infringements,” particularly involving abusive and invasive data practices. This regulatory action underscores the Nigerian government’s commitment to enforcing data privacy laws and protecting consumer rights.
Industry Impact and Future Implications
The fine against Meta is part of a broader trend of increased regulatory scrutiny on data privacy practices globally. In October 2023, TechCabal reported that companies like OPay, Meta, and DHL could face fines up to 2% of their gross revenues if found guilty of data privacy violations according to Section 48 (5) of the Nigeria Data Protection Act of 2023.
The Nigerian authorities have made it clear that they are serious about enforcing data privacy laws, and this significant fine against a global tech giant underscores their commitment to protecting consumer rights. The decision may have a ripple effect, encouraging other countries in Africa and beyond to take similar actions against companies that violate data privacy regulations.
Exclusive: Meta to Reduce Office Space in Lagos
In a related development, Meta is reportedly planning to reduce its office space in Lagos following recent layoffs affecting its Nigerian team. This move comes amid broader cost-cutting measures and strategic adjustments in response to regulatory pressures and market conditions.
Conclusion
The fine against Meta is a landmark decision in Nigeria’s regulatory landscape, highlighting the importance of data privacy and consumer protection. As Meta plans to appeal the decision, the tech industry will be closely watching how this case unfolds, as it may set a precedent for future regulatory actions in Nigeria and other emerging markets.