Meta to appeal India penalty on WhatsApp privacy policy News
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Meta to appeal India penalty on WhatsApp privacy policy

The Competition Commission of India (CCI) has imposed a penalty of ₹213.14 crore (approximately $25.4 million USD) on Meta Platforms for abusing its dominant position through WhatsApp’s 2021 privacy policy update. The CCI found on Monday that the update imposed “unfair conditions” on users by making data sharing with Meta’s other applications mandatory, violating the Competition Act. The policy, introduced on a “take-it-or-leave-it” basis, expanded data collection and sharing without offering users the choice to opt-out. This was deemed to undermine user autonomy and create entry barriers for competitors in the online display advertising market.

The CCI directed Meta and WhatsApp to cease sharing user data for advertising purposes between Meta companies for five years. The watchdog also required WhatsApp to specify the types of user data shared and their purposes while ensuring users could opt out of data sharing for non-WhatsApp services. These behavioral remedies aim to address anti-competitive concerns and enhance user choice.

The controversy surrounding WhatsApp’s privacy policy update began in January 2021, when users were notified of the new terms. Unlike earlier policies, which allowed users to opt out of data sharing, the 2021 update made such sharing mandatory. This led to widespread criticism, with many users migrating to alternative platforms like Signal and Telegram. The policy update was challenged in Indian courts, with the Delhi High Court rejecting Meta and WhatsApp’s appeals to halt CCI’s investigation, emphasizing the dominant market position of the messaging app.

Meta has announced plans to appeal the CCI’s decision, maintaining that the 2021 update did not affect the privacy of users’ messages. A company spokesperson clarified that the update introduced optional business features and enhanced transparency regarding data usage, asserting that no user lost access to WhatsApp services due to the update. However, the CCI concluded that the policy leveraged WhatsApp’s dominance in the OTT messaging market to reinforce Meta’s position in the online advertising sector, thereby stifling competition.

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