$220m Fine: Why Tribunal Judgement May Disrupt WhatsApp Services in Nigeria
WhatsApp LLC has warned that a recent legal decision by Nigeria’s Competition and Consumer Protection Tribunal could impact its operations in the country. The ruling backs the authority of the Federal Competition and Consumer Protection Commission (FCCPC) to sanction WhatsApp and its parent company, Meta Platforms Inc., for alleged anti-competitive behavior.
In a statement sent to LEADERSHIP Sunday, WhatsApp explained that its global service depends heavily on Meta’s infrastructure. “Our platform functions using limited data, which helps ensure user safety. Without Meta’s support systems, continuing to operate WhatsApp in Nigeria—or anywhere—would be extremely difficult. The FCCPC’s order contains significant inaccuracies and misrepresents how our service works. We are urgently seeking a stay of the order and will appeal the ruling to prevent disruption for users,” the company said.
The tribunal, led by Hon. Thomas Okosun, upheld the FCCPC’s July 19, 2024 decision, issuing a $220 million fine against Meta and WhatsApp, along with an additional $35,000 in investigation costs. This verdict follows a 38-month joint investigation launched in 2020 by the FCCPC and Nigeria Data Protection Commission (NDPC), focusing on data practices and alleged privacy violations.
Challenging the commission’s conclusions, Meta and WhatsApp argued against the FCCPC’s authority and the legitimacy of its investigation. However, the tribunal dismissed most of their objections, affirming that the FCCPC acted within the scope of Nigeria’s Constitution and the Federal Competition and Consumer Protection Act (FCCPA). It also concluded that both companies were given a fair hearing.
A significant aspect of the ruling clarified that the FCCPC has jurisdiction over data privacy matters, even in sectors that are typically regulated independently. While the tribunal upheld nearly all of the FCCPC’s findings, it did strike out one component of the commission’s final order—Order 7—citing insufficient legal backing.
FCCPC CEO Tunji Bello welcomed the ruling as a landmark for consumer rights enforcement in Nigeria. He praised his legal team’s efforts and emphasized the commission’s ongoing commitment to fair market practices in line with national economic reforms under President Bola Tinubu.
Despite the setback, WhatsApp has signaled its intent to remain active in Nigeria. However, it cautioned that enforcing the tribunal’s decision without access to Meta’s backend systems could severely compromise service delivery.
As both parties prepare for the next round of legal proceedings, the situation sets the stage for a broader conversation about the power of national regulators versus global tech companies.
