The saga between the Meta-owned messaging platform, WhatsApp and Nigeria's Federal Competition and Consumer Protection Commission (FCCPC), has taken an interesting turn.
WhatsApp is reportedly threatening to leave the country if the FCCPC insists on its demands. They include an order to stop WhatsApp from sharing data with Facebook and other Meta companies — giving Nigerians control over their data — and providing detailed information on the kinds of data WhatsApp collects from them.
The Commission made these demands, slamming a $220 million fine, after it claimed that Meta is discriminating against Nigerians, denying them control of their data, and sharing their data with third parties without consent.
Per TechCabal, a Meta spokesperson said FCCPC's orders will make it impossible for WhatsApp to provide its services in Nigeria.
While the company might opt to leave the country based on these demands, some facts point out that the threat to leave might be a bluff.
Why WhatsApp will not leave Nigeria
While the news of WhatsApp's plan to leave Nigeria has been met with various reactions on social media, some people such as Babatunde Irukera, former FCCPC boss, have pointed out that the messaging platform is threatening the nation with departure because it wants to conduct business how it wants.
He said on X that the company should "appeal as they have & let the legal process run its course. Empty threats to beat a nation are condemnable & reprehensible."
Another X user also pointed out that Meta paid a $1.4 billion fine for collecting people's data without their consent.
Similarly, FCCPC's grouse is that WhatsApp allegedly violated the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).
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And while it threatens to leave the country, here's why it might be a bluff.
Nigeria has the 10th largest number of WhatsApp users
WhatsApp is the most popular messaging app in the world and the fourth most popular social media app after Facebook, YouTube, & Instagram.
As of April 2024, WhatsApp leads globally with 2 billion monthly users, followed by WeChat with 1.3 billion, Facebook Messenger with 1 billion, and Telegram with 900 million.
Out of WhatsApp's 2 billion active monthly users, Nigeria accounts for 3% — 51 million users. This means Nigeria is the 10th largest user of the messaging platform, while India, which is ranked number one, has over 500 million users (27%).
Nigeria has the fifth largest number of WhatsApp Business users, the app's primary revenue source
While Nigeria might account for only 3% of WhatsApp monthly users, it is the fifth largest user of WhatsApp Business, the app's primary source of revenue.
According to Rayasel, WhatsApp Business made an estimated $382 million in 2023, and $155 million of that came from Asia.
However, there isn't an estimate as to how much WhatsApp Business makes in Africa or even Nigeria. But given that the country is one of the top 5 users of the platform in the world, it is likely that it could be a significant revenue source for WhatsApp.
WhatsApp has been accused of similar breaches
While WhatsApp says it will not be able to offer its services in Nigeria based on FCCPC's demands, it has faced similar troubles in other countries and continued to function.
In 2021, a complaint was made by a German data subject, and similar to Nigeria, it involved forcing users to consent to an updated data policy. WhatsApp Ireland — headquarters of WhatsApp in Europe — was fined €5.5 million.
In addition to the fine, it was also required to bring its processing operations into compliance with the General Data Protection Regulation (GDPR) within six months.
Beyond the $220 million fine, the FCCPC's demands are:
- Provide the Commission and the National Data Protection Commission (NDPC) with detailed information on the data they collect, specify which data is essential for maintaining service, and stop collecting any other data until further regulatory action.
- Restore Nigerian users' rights to control their data and allow them to restrict or withdraw consent without losing app functionality.
- Update their privacy policy to comply with Nigerian law, ensuring it's clear and allows users to give freely or withdraw consent for each piece of data collected.
- Comply with Nigerian law regarding storing and transferring users' data in data centres outside Nigeria.
- Stop sharing WhatsApp users' information with Meta companies and third parties until users give clear consent for each use of their data.
- Return to 2016 data-sharing practices and create an opt-in screen for users to consent to additional data sharing.
WhatsApp's exit could also be detrimental
An exit could affect communication and small businesses that have built their operations around the platform.
WhatsApp is the leading messaging app in many African countries, boasting high usage rates. In Kenya, it is used by 97% of the population, 96% in South Africa, and 95% in Nigeria. In Zimbabwe, it makes up almost 44% of all mobile internet usage.
The result of WhatsApp's appeal could determine if it will stay in its largest African market or not.
