$220 million Tribunal ruling: WhatsApp warns of service disruption in Nigeria

0 million Tribunal ruling: WhatsApp warns of service disruption in Nigeria

Isaac Samuel

Following the decision of Competition and Consumer Protection Tribunal affirming the Federal Competition and Consumer Protection Commission’s (FCCPC) authority to sanction the WhatsApp LLC and its parent company, Meta Platforms Incorporated anti-competitive practices, the company has said the judgment could affect its operations in Nigeria.

In a statement sent on Sunday, WhatsApp stressed that its services in Nigeria and globally are heavily reliant on infrastructure provided by Meta.

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

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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

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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.

Reacting, WhatsApp said: ““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.

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“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.

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