Meta Faces Fine Of Over Rs 200 Cr In India. WhatsApp Asked To Cease THIS Action Immediately
The CCI found Meta, operating through WhatsApp, to hold a dominant position in both markets.
Meta has been penalised Rs 213.14 crore by the Competition Commission of India (CCI), citing abuse of its market dominance through WhatsApp's controversial 2021 privacy policy. The policy, which mandated extensive data sharing between WhatsApp and other Meta entities, drew regulatory ire for its restrictive nature.
Alongside the financial penalty, the CCI directed Meta and WhatsApp to cease such practices and comply with specific remedial measures within a prescribed timeframe. A key directive bars WhatsApp from sharing user data collected on its platform with Meta’s other services for advertising purposes over the next five years.
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What Directives Have Been Give To WhatsApp?
After this period, WhatsApp must refrain from enforcing conditional access, such as compelling users to agree to data-sharing policies unrelated to the app’s core messaging service. Users will also be granted the ability to opt out of data sharing via clear in-app notifications and a dedicated settings tab.
Furthermore, WhatsApp is required to transparently outline what user information is shared, detailing the specific purpose for each type of data. All future updates to its privacy policy must align with these stipulations.
The CCI assessed two primary markets: over-the-top (OTT) messaging services on smartphones in India and online display advertising. It found Meta, operating through WhatsApp, to hold a dominant position in both markets.
When Did The Probe Begin?
The investigation stemmed from WhatsApp’s 2021 privacy policy update, which imposed expanded data-sharing requirements as a condition for continued app use. The CCI determined this “take-it-or-leave-it” approach to be unfair under competition law, restricting users’ freedom of choice and leveraging Meta’s market dominance.
The regulator also highlighted how such data-sharing practices could hinder competition in the online advertising sector, creating barriers for rivals and reinforcing Meta's stronghold.
This ruling underscores the CCI's efforts to address digital monopolistic practices and safeguard consumer interests in India's rapidly growing tech ecosystem.
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