The Competition Commission of India (CCI) has imposed a hefty penalty of Rs 213 crore on Meta for alleged violations related to WhatsApp’s privacy policy. In response, the company has expressed its disagreement with the ruling and announced plans to lodge an appeal.
The CCI’s decision, announced on Monday, prevents WhatsApp from sharing user data with other Meta-owned applications for advertising purposes for a duration of five years.
This penalty stems from concerns over unfair business practices linked to the update of WhatsApp’s privacy policy in 2021.
In addition to the fine, the CCI has instructed Meta to halt any anti-competitive practices and fulfill specific behavioral remedies within a set timeline to rectify the identified issues.
A spokesperson for Meta stated that the company contests the CCI’s ruling, asserting plans to appeal the decision.
“It is important to note that the 2021 update did not alter the privacy of users’ personal messages and was presented as an option for users,” the spokesperson explained. “We ensured that no one would face account deletions or loss of functionality due to this update.”
According to Meta, the update aimed to introduce optional business features for WhatsApp and enhance transparency regarding data collection and usage.
Furthermore, the spokesperson emphasized the value of WhatsApp, noting its role in helping people and businesses, including aiding organizations and government bodies in providing services during the COVID-19 pandemic and supporting small enterprises vital to the Indian economy.
“WhatsApp’s ability to offer these services is supported by Meta, and we are dedicated to finding a way forward that allows us to continue delivering the experiences expected by our users and businesses,” the spokesperson added.
Meanwhile, the CCI’s directive prohibits WhatsApp from sharing any user data obtained on its platform with other Meta companies or products for advertising over the next five years.
Regarding the data sharing policy, the regulator has mandated that WhatsApp provide a comprehensive explanation of any data shared with other Meta entities, including the specific purpose behind such sharing.
“This explanation must link each type of data to its intended purpose,” the CCI stated.
Moreover, the CCI specified that sharing user data collected on WhatsApp with other Meta companies for any purposes other than providing WhatsApp services should not be a prerequisite for users to access the service in India.
For data sharing related to purposes beyond WhatsApp service provision, the CCI has stated that all users in India, including those who accepted the 2021 update, will have the option to manage such data sharing via a prominent opt-out feature presented through an in-app notification.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
