By Ejiofor Agada
Amid a contentious battle between WhatsApp, a subsidiary of Meta Platforms Inc., and Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC), there currently seems to be a narrative of strategic maneuvering and public opinion manipulation that is unfolding. The dispute, characterized by allegations of attempted blackmail by the Meta company, has stirred significant controversy within the tech industry and regulatory circles.
Here I want to attempt to delve into the unfolding saga, examining the tactics employed by Meta to influence public perception, the repercussions of the blackmail accusations, and the broader implications of this clash on the landscape of technology regulation in Nigeria.
As a form of introduction, WhatsApp, a subsidiary of Meta Platforms, Inc., has recently claimed that it might be forced to exit Nigeria following an order from the Federal Competition and Consumer Protection Commission (FCCPC). To a lot of industry watchers, this sort of declaration appears to be a strategic maneuver aimed at swaying public opinion and exerting pressure on the FCCPC to reconsider its decision. Such tactics are not unprecedented for Meta, a company with a history of contentious interactions with regulatory bodies worldwide concerning data privacy and market dominance.
Global Precedents of Meta’s Regulatory Challenges
Meta has faced numerous regulatory hurdles globally, often about the protection of personal data and market fairness. For instance, the company has been scrutinized for transferring and sharing user data without authorization. In 2018, the European Union fined Facebook €110 million for misleading information about its data-sharing practices when it acquired WhatsApp. Additionally, in Germany, the Federal Cartel Office imposed restrictions on Facebook’s data collection practices, highlighting the company’s abusive dominance by aggregating user data across its various platforms without proper consent.
In India, the Competition Commission of India (CCI) launched an investigation into WhatsApp’s updated privacy policy, which allowed extensive data sharing with Facebook. The CCI noted that such practices might exploit WhatsApp’s dominant position, undermining user choice and violating fair market competition principles. Similarly, in the United States, Meta has faced multiple lawsuits for allegedly discriminatory practices and failing to protect user data adequately.
WhatsApp’s Strategy in Nigeria
WhatsApp’s assertion that it might withdraw from Nigeria aligns with its historical approach of leveraging its vast user base to counter-regulatory actions. This tactic, perceived by many as a form of corporate blackmail, aims to create public unrest and apply pressure on regulatory bodies to mitigate enforcement actions. However, the Nigerian government, through the FCCPC and the Nigeria Data Protection Regulation (NDPR), has a responsibility to uphold data protection and fair market practices.
Industry experts have weighed in on this issue. Dr. Isa Ali Ibrahim Pantami, Nigeria’s former Minister of Communications and Digital Economy, had expressed concerns over the need for compliance with local regulations. “Digital platforms must respect our laws and regulations. Protecting the data of Nigerians is non-negotiable,” he stated in a recent interview.
Similarly, Nnenna Nwakanma, Chief Web Advocate at the World Wide Web Foundation, commented, “Meta’s strategy of threatening to exit markets to avoid regulatory compliance is not new. It’s a bullying tactic that undermines the sovereignty of nations and the rights of consumers.”
The Role of FCCPC and NDPR in Data Protection and Fair Practices
The Federal Competition and Consumer Protection Act (FCCPA) is designed to promote fair, efficient, and competitive markets in Nigeria. It aims to protect consumers from unfair practices, including the misuse of market dominance and the violation of consumer rights. The Nigeria Data Protection Regulation (NDPR), on the other hand, focuses on safeguarding the personal data of Nigerian citizens. It mandates that companies must obtain explicit consent before collecting, processing, or sharing personal data and must ensure adequate data protection measures are in place.
WhatsApp’s compliance with these regulations has come under scrutiny, leading to the FCCPC’s recent order and the imposition of a $220 million penalty. This fine is consistent with other significant financial penalties imposed on Meta globally. For example, in 2019, the Federal Trade Commission (FTC) in the United States fined Facebook $5 billion for privacy violations. In the European Union, the Irish Data Protection Commission fined WhatsApp €225 million in 2021 for breaching the EU’s General Data Protection Regulation (GDPR) by failing to adequately inform users about data-sharing practices with Facebook.
Akin Osinbajo, a Nigerian ICT lawyer, remarked, “The FCCPC’s actions are in line with global standards. Meta needs to understand that it cannot operate above the law, irrespective of its market share.”
Recommendations for Other Social Media Brands
The FCCPC and NDPR should extend their scrutiny to other social media platforms operating in Nigeria to ensure compliance with data protection and fair practice regulations. Platforms such as Instagram (also owned by Meta), Twitter, and TikTok should be regularly audited for potential data privacy infringements and market dominance abuses. Ensuring these companies adhere to Nigerian laws is crucial in safeguarding consumer rights and maintaining a fair competitive environment.
WhatsApp’s threat to exit Nigeria appears to be a calculated attempt to avoid regulatory penalties by leveraging its market position and user base. The FCCPC and NDPR must remain resolute in enforcing data protection and fair competition laws to protect Nigerian consumers. Financial penalties, such as the $220 million imposed on WhatsApp, are essential in holding these tech giants accountable. Additionally, a broader regulatory approach should include regular audits and stringent enforcement actions against all social media platforms to ensure they operate within the legal framework, protecting both consumer data and market integrity.
In summary, while WhatsApp’s departure would undoubtedly impact its Nigerian users, regulatory bodies must maintain their stance to ensure a fair and secure digital environment. This approach not only protects consumers but also fosters a competitive market where all players are held to the same standards of fairness and data protection.
Ejiofor Agada is an IT industry Communications consultant based in Abuja
