November 19, 2024: Meta, the parent company of WhatsApp, has announced its intention to challenge the Rs 213.14-crore penalty imposed by the Competition Commission of India (CCI) over alleged anti-competitive practices related to the messaging app's 2021 privacy policy update. The fine, one of the largest of its kind in India, is accompanied by directives for Meta to cease certain business practices deemed unfair and to implement specific remedies within a defined timeframe.
In its order, the CCI stated that WhatsApp's 2021 privacy policy update involved practices that could be considered anti-competitive, particularly its sharing of user data with other Meta-owned platforms for advertising and commercial purposes. The commission concluded that this move was detrimental to user interests and the competitive landscape in the digital communications sector.
As part of the ruling, the CCI has prohibited WhatsApp from sharing user data with other Meta entities for five years and mandated significant transparency measures. The company is now required to explicitly outline what data is shared with Meta-owned platforms and how it will be used, providing clear explanations for each type of data. The commission also stated that users should not be forced to share personal data with Meta for purposes unrelated to the core function of WhatsApp in order to continue using the app in India.
In response, a Meta spokesperson expressed disagreement with the CCI’s findings and reiterated that the company would appeal the decision. The spokesperson emphasized that the 2021 policy update did not alter the privacy of users' personal messages and that accepting the update was optional. Meta clarified that no user had their account deleted or services interrupted for choosing not to accept the policy change.
The company further defended the update, noting that it introduced optional business features and aimed to provide greater transparency around data collection and usage. Meta pointed out that WhatsApp remains an integral part of India's digital ecosystem, used by businesses, government services, and millions of small enterprises to communicate and operate effectively.
The penalty and CCI's ruling come at a time when India is tightening its regulatory approach to digital platforms, with growing concerns over data privacy and market competition. Meta now faces the challenge of complying with the order or appealing it in court, with the outcome likely to have significant implications for the future of digital privacy policies and the way big tech companies operate in India.