After a rigorous three-year investigation, the Federal Competition and Consumer Protection Commission (FCCPC) has imposed a $220 million fine on Meta, citing violations of the FCCPC Act 2018, the Nigeria Data Protection Regulation 2019 (NDPR), and other relevant laws by its subsidiary, WhatsApp, between May 2021 and December 2023.
The comprehensive 116-page investigative report by the FCCPC revealed that WhatsApp engaged in exploitative practices and abused its market dominance in Nigeria. Key findings included excessive data collection, coercion of users to accept updated privacy policies, and discriminatory practices against Nigerian users compared to European counterparts.
Excessive Data Collection and coercive privacy policy acceptance
WhatsApp was found to be collecting 44 metadata points from Nigerian users, significantly more than similar apps such as Signal and Telegram, which collects only four. This data was used for device fingerprinting, allowing the tracking of devices across different websites and apps without user consent.
The FCCPC also reported that WhatsApp pressured users into accepting its updated privacy policy by reducing user experience and using persistent notifications. Users had no option to opt out or withhold consent for data sharing with third parties.
Discrimination Against Nigerians and Reduced Data Protection Rights
The report highlighted that European users were given more information and options regarding data collection and privacy policies, unlike Nigerian users who were forced to accept the updated policies without similar protections.
WhatsApp’s 2021 privacy policy update removed user protections that previously allowed control over data shared with third parties. This contrasted sharply with the robust data rights provided to European users.
Despite these findings, Meta has disputed the FCCPC’s claims, disagreed with the judgment and the fine, and announced plans to appeal the decision. The company maintains that WhatsApp’s practices comply with applicable laws and regulations.
Market Impact and Future Implications
The FCCPC’s data shows that WhatsApp holds a dominant 65% market share in Nigeria, making it challenging for users to switch to other messaging platforms. The imposed fine and ongoing legal battle highlight the broader issues of data privacy, user consent, and corporate accountability in the digital age.
As Meta prepares to contest the ruling, the outcome of this case could set a significant precedent for how tech giants operate in Nigeria and other jurisdictions with similar regulatory frameworks. The fight between the FCCPC and Meta is far from over, and its resolution will be closely watched by industry stakeholders and users alike.
