CCI fines Meta over WhatsApp policy, data-sharing practices.
The CCI has also forbidden WhatsApp from making user data sharing with Meta companies a precondition for accessing WhatsApp services in India.
In a significant blow to WhatsApp and its parent entity Meta, the Competition Commission of India on Monday imposed a penalty of ₹213.14 crore (about USD 25.3 million) on Meta for abusing its dominant position through the 2021 update to WhatsApp’s privacy policy and thus violating the Competition Act. The CCI has instructed WhatsApp to not share the user data with other Meta companies (such as Instagram and Facebook) and products for advertising purposes for five years.
The CCI has also forbidden WhatsApp from making user data sharing with Meta companies a precondition for accessing WhatsApp services in India.
WhatsApp’s policy must indicate what data is shared with Meta companies and products for non-advertising uses. User data supplied for purposes other than WhatsApp services must be given the option to opt out and change in-app. It must be available to all users, including those that accepted the 2021 update.
According to the CCI, WhatsApp dominates the smartphone OTT messaging app market in India, while Meta has a “leading position” in online display advertising.
CCI Investigates WhatsApp Data Sharing; Meta Plans to Appeal
WhatsApp’s 2021 privacy policy update had come under fire across the world for antitrust concerns, and for undermining users’ privacy. A Brazilian court, in August 2024, had prohibited WhatsApp from sharing data with Facebook and Instagram in the country.
A Meta spokesperson said that they plan to appeal against the CCI’s decision.
“We disagree with the CCI’s decision and plan to appeal. The 2021 upgrade did not modify personal message privacy and was presented as a choice.
CCI had opened an investigation into WhatsApp’s January 2021 update in March 2021. But these were privacy petitions.
A single judge bench of Justice Navin Chawla had dismissed WhatsApp’s petition in April 2021.
