New Delhi: Meta Platforms Inc. is set to challenge a hefty penalty imposed by the Competition Commission of India (CCI) related to WhatsApp’s controversial 2021 privacy policy update. The CCI slapped Meta with a Rs. 213.14 crore fine, alleging anti-competitive practices such as sharing user data with other Meta-owned platforms for advertising purposes.
The CCI’s order prohibits WhatsApp from sharing user data with other Meta entities for advertising for the next five years. Furthermore, the regulator has directed WhatsApp to provide users with an opt-out option regarding data sharing, even for those who accepted the 2021 update. This opt-out feature must be clearly communicated to users through in-app notifications.
WhatsApp has also been instructed to provide detailed explanations about the types of user data shared with other Meta companies and the specific purposes for this data sharing. Crucially, the CCI emphasized that sharing user data with Meta for non-WhatsApp related services cannot be a precondition for using the messaging app in India.
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Meta, however, is pushing back. A company spokesperson expressed disagreement with the CCI’s findings, stating that the 2021 policy update did not impact the privacy of users’ personal messages and was entirely optional. The spokesperson reiterated that no user faced account deletion or service disruption for not accepting the updated policy.
Meta maintains that the policy update aimed to introduce optional business features and enhance transparency regarding data collection and usage practices. The company now plans to appeal the CCI’s ruling. This sets the stage for a legal battle between the tech giant and the Indian regulator, with significant implications for data privacy and competition in the Indian digital market.
