Appeal the $220m fine, rather than threaten – Expert tells WhatsApp

Mr Jide Awe, a Technology and Innovation Policy Advisor, on Monday decried WhatsApp threat to leave Nigeria, saying the approach was narrow.

Awe, who is also the Founder of Jidaw.com Ltd. a tech solutions company, said this to the newsmen in Lagos while reacting to WhatsApp threat to exit Nigeria.

He said that the threat made it seem as if Whatsapp considered their Nigeria operations solely from the cash-generated perspective, adding that a big picture understanding was necessary.

He said that rather than appealing to public sentiment or threatening to leave, the best thing was to simply appeal, if it had problems with the size of the fine.

WhatsApp owned by Meta Platform Incorporation was investigated for an alleged violation of the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR).

WhatsApp was fined by the Federal Competition and Consumer Protection Commission (FCCPC) after a three-year investigation alleging that the company’s privacy policy was “foisted” on users.

According to the regulator, it found that Meta Parties (WhatsApp) engaged in multiple and repeated infringements of the FCCPA and the NDPR laws.

The agency said at the time that: “These infringements included denying Nigerians the right to control their personal data, transferring and sharing Nigerian user data without authorisation, discriminating against Nigerian users compared to users in other jurisdictions and abusing their dominant market position by forcing unfair privacy policies.”

Awe said: “Fear mongering by such a global brand is both surprising and disturbing. Threatening to exit is not the mature response to regulatory action. Is it intended to intimidate the nation to ignore its own regulations?

“Their approach is quite narrow, if they consider their Nigeria operations solely from the cash-generated perspective. A big picture understanding is necessary.

“Additionally, there are certainly alternatives to WhatsApp that may jump at the opportunity to acquire its user base and market share.

“Indeed, it is even a disrespectful approach that focuses only on what they can gain from Nigeria without any genuine consideration for the interests of Nigeria and its people, “Awe noted.

Speaking on the implications of WhatsApp exiting, Awe said its withdrawal could have serious social and economic consequences, since there was a significant use of the app for personal communication and business.

He explained that WhatsApp was the preferred social media platform for most Nigerians.

“The 220 million dollars fine imposed by Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) on WhatsApp for violating anti-competitive rules and data privacy regulations is actually a substantial amount and a big blow.

“It can certainly have implications on attracting foreign investment, however WhatsApp has been fined for data privacy violations in other countries too, and was fined €225 million ($266 million) penalty by the Irish Data Protection regulator in 2021.

“It is currently facing regulatory action and appealing large penalties in several countries. Interestingly, WhatsApp is not threatening to exit in those places, “he said.

The tech advisor said that strict compliance with data privacy regulations was a requirement in all modern societies, and tech giants handling such massive amounts of data would attract scrutiny regarding their data practices.

“In fact, this WhatsApp case in Nigeria is not an isolated case. It is part of a trend involving tech giants and data privacy violations. Their profit-driven business models often rely heavily on user data.

“This increases the risks of both unintentional and intentional data violations and misuse,” Awe noted.

He explained that generally the weakness of enforcement of data privacy laws resulted in loud and hefty sanctions when infringements are eventually discovered.

Awe noted that while there were serious implications if they carried out their threat, the regulators could not be expected to abdicate their responsibilities.

According to him, companies must adhere to laws and regulations of the land, and should expect to be held accountable for their actions.

Awe noted that they could not be profiting through the country and be feeling too big to comply with its legal requirements.

He added that protecting ones business interests also entailed complying with regulations and upholding the law.

He said while their exit would have some adverse impact, it was necessary for us to value ourselves as a nation.

The tech advisor added that the nation, its privacy laws and fairness in treatment of Nigerians could not and must not be taken for granted.

He urged Nigeria to reduce its dependence on foreign tech solutions.

“Too much dependence on foreign tech solutions can have significant social and economic consequences on Nigeria.

“It is a matter of national security and sustainable development.

“As digital adoption and dependence grows, overreliance on foreign tech platforms becomes increasingly risky.

“It is a reminder that Nigeria must invest in research, support startups, bridge the digital divides in practical and real terms, develop strategic partnerships, and promote local innovation and an innovative mindset in society.

“It is a question of priority, not feasibility, “he said.

Awe, however noted that regulators must, at the same time, promote the adoption of innovative solutions.

He said that they should also avoid discouraging foreign investment or being hostile to foreign tech companies.

Awe said this should be considered in the WhatsApp case, however, they should not succumb to threats but offer them fair hearing, understanding and show flexibility.

“Indeed, they must ensure that attracting foreign investment and technology adoption comes with fair competition, compliance with local regulations and laws, protecting rights of consumers and local businesses, and not just profit making, “Awe said.