The Competition Commission of India (CCI) recently imposed a Rs.213 crore penalty on Meta, the parent company of WhatsApp, over alleged anti-competitive practices linked to WhatsApp’s 2021 privacy policy update. Responding to the fine, Meta has expressed its disagreement and announced its intent to consider legal options to challenge the decision.
Why Was the Fine Imposed?
The CCI’s decision relates to privacy policy changes introduced by WhatsApp in 2021. According to the regulator, these changes allowed WhatsApp to share user data with other Meta-owned platforms for advertising purposes. To address these concerns, the CCI has barred WhatsApp from sharing such data for five years.
Additionally, Meta and WhatsApp have been directed to implement corrective measures within a set timeframe to address potential anti-competitive concerns.
Meta Defends Its Policy
Meta has clarified that the 2021 privacy policy update did not affect the privacy of users’ personal messages. The update was primarily aimed at introducing optional commercial features on WhatsApp and improving transparency around data collection and usage.
A Meta spokesperson emphasized that users were not forced to accept the update, and no accounts were deleted or restricted due to non-acceptance of the changes.
Importance of WhatsApp for Businesses
Meta also highlighted the crucial role WhatsApp plays in supporting businesses, especially small enterprises in India. During the pandemic, WhatsApp enabled businesses to stay connected with customers and helped government institutions deliver essential services to citizens.
The spokesperson added, “We are committed to finding a solution that allows us to continue offering the experiences people and businesses rely on.”
CCI’s Directive on User Data
The CCI has strictly prohibited WhatsApp from sharing user data with other Meta platforms for advertising. It also requires WhatsApp to include detailed descriptions in its policy about how user data is shared for any purpose other than advertising.
This decision marks a significant step in regulating data-sharing practices in India, setting a precedent for how tech companies handle user privacy.
