The Competition Commission of India (CCI) has levied a penalty of Rs 213.14 crore on Meta, primarily concerning the privacy policy of WhatsApp. In response to the decision, the company has expressed its disagreement and intentions to file an appeal. The CCI, which made the announcement on Monday, has instructed WhatsApp not to share user data with other Meta-owned applications for advertising purposes for five years.
The penalty stems from Meta’s handling of WhatsApp’s privacy policy update that took place in 2021, which the commission deemed to constitute unfair trade practices.
In addition to the financial penalty, the CCI has ordered Meta to halt any anti-competitive practices. The company and WhatsApp are also required to adopt specific behavioral remedies within a set timeframe to address the identified competition-related concerns.
A spokesperson for Meta stated that the company intends to contest the CCI’s ruling. “It’s important to note that the update in 2021 did not alter the privacy of personal messages and was presented as a choice for users. We made sure that no account would be deleted or lose functionality as a result of this update,” the spokesperson explained.
Meta further clarified that the policy update aimed to introduce optional business features on WhatsApp while increasing transparency regarding data collection and usage.
The spokesperson highlighted the significant role WhatsApp has played in facilitating communication for individuals and businesses, particularly in providing citizen services during the COVID pandemic and supporting small enterprises in India’s economy.
“WhatsApp can continue to deliver these valued services because it operates with the support of Meta. We are dedicated to finding ways to maintain the experiences that users and businesses expect from us,” the spokesperson said.
Meanwhile, the CCI’s ruling prevents WhatsApp from sharing user data obtained through its platform with other Meta entities or products for advertising over the next five years.
Regarding data sharing for purposes beyond advertising, the CCI mandated that WhatsApp must provide a comprehensive explanation detailing the data shared with other Meta companies. This explanation should clarify the purpose of each data type linked to its corresponding use.
The regulator confirmed that sharing WhatsApp user data with other Meta products cannot be a prerequisite for users accessing the WhatsApp service in India.
CCI also stated that all users in India, including those who have agreed to the 2021 update, should be allowed to manage their data sharing preferences through a clearly defined opt-out option presented prominently within the app.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
