$220m Fine: Judgement Will Affect Our Services In Nigeria – WhatsApp

WhatsApp LLC has said the judgment delivered by the Competition and Consumer Protection Tribunal, which affirmed the authority of the Federal Competition and Consumer Protection Commission (FCCPC) to penalise the platform and its parent company, Meta Platforms Incorporated, for anti-competitive practices, would affect its operations in Nigeria.

WhatsApp, in a statement sent to LEADERSHIP Sunday yesterday, said the platform’s ability to operate both in Nigeria and globally is inseparable from the infrastructure provided by Meta.

“WhatsApp relies on limited data to run our service and keep users safe, and it would be impossible to provide WhatsApp in Nigeria, or globally, without the infrastructure of our parent company, Meta. The FCCPC order contains multiple inaccuracies and misrepresents how WhatsApp works, and we are urgently applying to stay the order and appeal today’s decision to avoid any impact to users,” it said.

Recall that the tribunal, led by Hon. Thomas Okosun, delivered a landmark judgment affirming the FCCPC’s authority and actions on nearly all the contested issues raised by Meta and WhatsApp. The tribunal upheld the commission’s final order issued on July 19, 2024, and awarded a $220 million administrative penalty against the tech giants, in addition to $35,000 in investigative costs.

The case stems from a sweeping 38-month joint investigation launched by the FCCPC and the Nigeria Data Protection Commission (NDPC) into Meta and WhatsApp’s conduct, privacy practices and consumer data policies, which began in 2020.

Dissatisfied with the FCCPC’s findings and penalty, Meta and WhatsApp filed an appeal challenging the commission’s legal authority, its investigative methods and the conclusions it reached.

However, the tribunal resolved Issues 1 to 7 largely in favour of the FCCPC, dismissing Meta and WhatsApp’s objections. It ruled that the commission acted within the limits of the 1999 Constitution (as amended) and the Federal Competition and Consumer Protection Act (FCCPA), and that it had accorded the companies ample opportunity for fair hearing, contrary to their claims.

One of the key points of contention – whether the FCCPC had the power to regulate matters touching on data privacy – was decided in favour of the commission.

The tribunal emphasised that the FCCPC’s broad mandate includes overseeing consumer protection even within regulated sectors like data privacy, reaffirming the commission’s powers under Section 104 of the FCCPA.

The tribunal also found no fault with the FCCPC’s conclusion that Meta’s privacy policy breached Nigerian laws. Nevertheless, it struck out Order 7 of the FCCPC’s final order, noting that it lacked sufficient legal basis.

In his reaction, the executive vice chairman/CEO of the FCCPC, Mr Tunji Bello, hailed the judgment as a milestone in Nigeria’s regulatory evolution. He commended the commission’s legal team for their forensic skill and diligence and reiterated the FCCPC’s commitment to safeguarding consumer rights and promoting fair business practices in line with President Bola Tinubu’s Renewed Hope Agenda.

WhatsApp’s decision to challenge the ruling signals a drawn-out legal battle ahead, one that could test the balance between Nigeria’s regulatory power and the operational frameworks of global technology giants.

Despite the tribunal’s judgment, WhatsApp emphasised its commitment to remaining in Nigeria and serving its millions of users. However, it warned that complying with the FCCPC’s current order, without reliance on Meta’s infrastructure, could severely disrupt its services in the country.

The coming months are likely to be critical as both sides prepare for the next phase of the legal confrontation.