Why Meta is in trouble in Nigeria and what this means for Facebook, Instagram and WhatsApp users

Meta, the parent company of Facebook, Instagram and WhatsApp, was recently hit with three fines totalling more than US$290 million in Nigeria. The fines were imposed by Nigeria’s Federal Competition and Consumer Protection Commission, Nigerian Data Protection Commission and the Advertising Regulatory Council of Nigeria. Meta was accused of invasive practices against data subjects and consumers in Nigeria. The company denied the allegations and has challenged the fines in court. Entrepreneurship and international business researcher Tolu Olarewaju and professor of entrepreneurship Jagannadha Pawan Tamvada explain the implications of the fines. What are the violations for which Meta got fined? The trouble began on 4 January 2021 when WhatsApp updated its privacy policy to introduce mandatory data-sharing with Facebook (now Meta) and its subsidiaries. The main change allowed WhatsApp to share user business interaction data with Facebook for marketing and advertising purposes. The updated policy did not include an opt-out provision. It was a “take it or leave it” policy. In other words, if users did not consent to the updated terms, they would no longer be able to use WhatsApp. This triggered a Federal Competition and Consumer Protection Commission investigation into Meta, conducted jointly with the Nigeria Data Protection Commission.
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