WhatsApp has warned that a recent ruling by Nigeria’s Competition and Consumer Protection Tribunal, which upheld the Federal Competition and Consumer Protection Commission’s (FCCPC) authority to penalise the platform and its parent company, Meta, for alleged anti-competitive practices, could jeopardise its operations in the country.
In a statement released yesterday, WhatsApp asserted that its ability to function in Nigeria, and globally, is intrinsically linked to the infrastructure provided by Meta. The company stated that it relies on minimal data to operate its service and ensure user safety, making it “impossible to provide WhatsApp in Nigeria, or globally, without the infrastructure of our parent company, Meta.”
WhatsApp further claimed that the FCCPC order contains “multiple inaccuracies and misrepresents how WhatsApp works.” The company announced that it is urgently seeking a stay of the order and will appeal the tribunal’s decision to prevent any disruption to its users.
The tribunal’s judgment, presided over by Hon. Thomas Okosun, largely sided with the FCCPC, affirming the commission’s authority on almost all contested points. The tribunal upheld the FCCPC’s final order issued on July 19, 2024, imposing a $220 million administrative penalty on Meta and WhatsApp, along with $35,000 in investigative costs.
The case originated from a comprehensive 38-month joint investigation by the FCCPC and the Nigeria Data Protection Commission (NDPC), initiated in 2020, into Meta and WhatsApp’s conduct, privacy practices, and consumer data policies.
Dissatisfied with the FCCPC’s findings and the imposed penalty, Meta and WhatsApp challenged the commission’s legal authority, investigative methods, and conclusions through an appeal.
However, the tribunal largely dismissed Meta and WhatsApp’s objections across seven key issues. It ruled that the FCCPC acted within the bounds of the 1999 Constitution (as amended) and the Federal Competition and Consumer Protection Act (FCCPA), and that the companies were afforded adequate opportunity for a fair hearing, contrary to their claims.
A significant point of contention – the FCCPC’s power to regulate matters concerning data privacy – was decided in favor of the commission. The tribunal emphasized the FCCPC’s broad mandate to oversee consumer protection, even within regulated sectors like data privacy, reinforcing its powers under Section 104 of the FCCPA.
The tribunal also supported the FCCPC’s finding that Meta’s privacy policy violated Nigerian laws. However, it did strike down Order 7 of the FCCPC’s final order, deeming it to lack sufficient legal basis.
In response to the judgment, the Executive Vice Chairman/CEO of the FCCPC, Mr. Tunji Bello, hailed it as a “milestone in Nigeria’s regulatory evolution.” He commended the commission’s legal team and reaffirmed the FCCPC’s commitment to protecting consumer rights and promoting fair business practices in line with President Bola Tinubu’s Renewed Hope Agenda.
WhatsApp’s decision to appeal sets the stage for a protracted legal battle that will likely test the limits of Nigeria’s regulatory authority over global technology giants.
Despite the tribunal’s ruling, WhatsApp emphasized its commitment to its millions of users in Nigeria. However, it cautioned that complying with the FCCPC’s current order without relying on Meta’s infrastructure could severely disrupt its services within the country. The coming months will be crucial as both sides prepare for the next stage of this legal confrontation.
