New Delhi: In a significant ruling, the Competition Commission of India (CCI) has imposed a hefty fine of Rs 213.14 crore on Meta, the parent company of Facebook and WhatsApp, for engaging in anti-competitive practices related to its 2021 WhatsApp privacy policy update. The CCI found Meta guilty of abusing its dominant position in the market for over-the-top (OTT) messaging apps by forcing users to accept unfair terms and conditions.
The crux of the issue lies in how WhatsApp’s updated policy in 2021 mandated data sharing with other Meta companies, eliminating the option for users to opt out. This move, according to the CCI, violated the Competition Act by imposing unfair conditions on users who had little choice but to accept the changes if they wished to continue using the popular messaging platform.
The CCI’s order mandates that Meta must “cease and desist” from these anti-competitive practices and implement several remedial measures. Notably, WhatsApp has been barred from sharing user data collected on its platform with other Meta companies for advertising purposes for a period of five years. Additionally, Meta cannot make data sharing with other Meta companies a prerequisite for users to access WhatsApp services in India.
The CCI emphasized that WhatsApp’s 2021 policy update, presented on a “take-it-or-leave-it” basis, exploited the platform’s vast user base and lack of comparable alternatives. This approach undermined user autonomy and constituted an abuse of Meta’s dominant market position.
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Furthermore, the CCI determined that Meta leveraged its dominance in the OTT messaging market to strengthen its position in the online display advertising market, another violation of competition law. By sharing WhatsApp user data with other Meta companies, the company created barriers to entry for rivals and denied them market access.
To address these concerns, the CCI has directed WhatsApp to provide users with a clear and detailed explanation of the data shared with other Meta companies, specifying the purpose of such sharing. Users must also be given the option to opt out of data sharing for purposes other than providing WhatsApp services. This opt-out choice must be prominently displayed through an in-app notification and easily accessible in the app’s settings.
This landmark ruling by the CCI sends a strong message about upholding user rights and ensuring fair competition in the digital space. It remains to be seen how Meta will respond to the order and what implications this decision will have on data sharing practices across the tech industry.
