November 24, 2024 17:36 (IST)
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CCI on Monday slapped a Rs 213.14 crore penalty on social media giant Meta for engaging in unfair business practices related to WhatsApp’s 2021 privacy policy update. Representational image from Pixabay

Meta disagrees with CCI's Rs 213-crore penalty over WhatsApp policy, to file an appeal

| @indiablooms | Nov 24, 2024, at 01:43 pm

New Delhi/IBNS: WhatsApp parent Meta plans to contest the Rs 213.14 crore fine imposed by the Competition Commission of India (CCI) for alleged anti-competitive practices tied to WhatsApp’s 2021 privacy policy update, according to media reports.

Alongside the penalty, the CCI directed the company to halt these practices and implement corrective measures within a specified timeline.

The CCI ruled that WhatsApp’s 2021 privacy policy enabled the sharing of user data with other Meta-owned platforms, such as Facebook, for advertising purposes, which it deemed anti-competitive.

The commission has prohibited WhatsApp from sharing user data with Meta for the next five years and instructed the company to take actions to resolve these issues. 

The order requires WhatsApp to provide detailed transparency about the types of data shared with other Meta platforms, linking each data type to its purpose.

It also prohibits making such data-sharing a condition for using WhatsApp in India, ensuring the app remains accessible regardless of user consent for non-service-related data sharing. 

A Meta spokesperson expressed disagreement with the CCI’s findings, stating that the 2021 policy update was optional and did not affect the privacy of users’ personal messages.

The spokesperson clarified that no user faced account suspension or service disruption for declining the update, which primarily introduced optional business features and aimed to enhance transparency around data collection. 

“WhatsApp plays a crucial role in India’s economy, supporting small businesses, government services, and enterprises, particularly during Covid-19 and beyond. The platform leverages Meta’s infrastructure to provide efficient services,” the spokesperson said, emphasising the company’s commitment to addressing user concerns while maintaining operational efficiency. 

In response to data-sharing concerns, the CCI has instructed WhatsApp to introduce an opt-out option for users in India, including those who previously accepted the 2021 policy.

This feature must be prominently displayed within the app via notifications, allowing users to control whether their data is shared with Meta for non-WhatsApp-related purposes. 

Additionally, the commission barred WhatsApp from using shared user data for advertising and mandated that any other data-sharing must be clearly explained to users, ensuring transparency and compliance with Indian regulations.

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