Meta, the parent company of WhatsApp, has expressed its disagreement with the recent ruling by the Competition Commission of India (CCI) and announced plans to appeal. The decision, which penalised Meta Rs 213.14 crore, revolves around WhatsApp’s controversial 2021 privacy policy update.
The CCI accused Meta of abusing its dominant position by implementing the policy update, raising concerns over user data collection and its sharing with other Meta entities.
How Did Meta Respond?
In its statement, Meta clarified that the update aimed to enhance business features and increase transparency regarding data usage without altering the privacy of personal messages. It emphasised that no user lost access to WhatsApp due to the update.
Meta highlighted the platform’s continued contribution to businesses and public services, particularly during the pandemic, stating that WhatsApp’s services supported economic growth and small businesses in India.
“The 2021 update did not change the privacy of people’s personal messages and was offered as a choice for users at the time. We also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update,” Meta said. “The update was about introducing optional business features on WhatsApp, and provided further transparency about how we collect and use data. And since that time, WhatsApp has been incredibly valuable to people and businesses, enabling organisations and government institutions to deliver citizen services through COVID and beyond, and as well as supporting small businesses, all of which furthers the Indian economy. WhatsApp is able to do all of this because it offers services supported by Meta."
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CCI Imposes Restrictions Alongside Fine
In addition to the fine, the CCI has directed Meta and WhatsApp to adopt behavioural changes. For the next five years, WhatsApp cannot share user data with other Meta companies for advertising purposes.
The Commission also criticised the “take-it-or-leave-it” approach of the privacy policy, calling it an unfair practice under competition law. According to the CCI, the data-sharing provisions create barriers for competitors and hinder market access in the digital advertising space.
The CCI has instructed WhatsApp to provide users with a detailed explanation of how their data is shared, linking specific types of data to corresponding purposes. It also mandated that accessing WhatsApp services in India cannot be conditional on sharing user data with other Meta entities for purposes unrelated to the messaging service.
Meta’s appeal against the ruling is expected to further intensify the debate around data privacy and competition practices in India.
