Facebook's Funds Frozen By Brazil Court Over WhatsApp Data

Facebook Inc.’s (NASDAQ:FB) troubles with Brazilian law enforcement agencies continue unabated. Yesterday, a federal court in the city of Londrina sealed Facebook’s funds worth 19.5 reais or $6 million held in the country for constantly refusing to handover data pertaining to a WhatsApp user involved in drug trafficking, after repeated court orders.

Per media reports, though WhatsApp functions as an independent entity, it does not have any bank accounts in Brazil and so the court froze the funds of its parent organization. The amount is almost equivalent to the fines levied for non compliance of court orders.

Media reports further add that Brazilian law enforcement agencies have been investigating a drug smuggling racket since January and they argue that without the critical WhatsApp data, they are at a loss as they will not be able to establish any connection between those arrested and their associates spread across Bolivia, Paraguay, Brazil and Spain.

WhatsApp has consistently maintained that it cannot furnish the information as it does not store any data pertaining to users. Moreover, WhatsApp has now been employing secured end to end encryption so that WhatsApp and third parties cannot read or listen to the chats and videos sent by users.

Earlier, in a similar drug case, the company’s regional vice president, Diego Dzodan, was arrested by Brazilian authorities only to be released the next day. In May 2016, a city court had ordered the shutdown of WhatsApp for 72 hours in the country causing widespread outrage. The ban was withdrawn shortly by an Appeals Court.

Analysts observe that the issue involving Internet companies and law enforcement agencies is highly complicated as neither of the parties can be blamed for what they are protecting. While Internet companies are trying to protect users’ privacy, national security concerns require law enforcement agencies to gain access to this data.

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