India's competition regulator Competition Commission of India (CCI) has slapped a ₹213.14 crore fine on Meta, citing unfair business practices related to WhatsApp’s controversial 2021 privacy policy update.
According to Press Release published on PIB, under the previous privacy policy dated 25.08.2016, WhatsApp users were given the option to decide whether they wanted to share their data with Facebook. However, with the latest policy update in 2021, WhatsApp made data sharing with Meta mandatory for all users, removing the earlier option to opt out.
The regulator has also directed Meta to cease anti-competitive practices and refrain from sharing WhatsApp user data with other Meta-owned applications for advertising purposes for a period of five years.
Meta’s Response: Disagrees with Decision
Meta has expressed its disagreement with the CCI’s ruling and plans to appeal. A Meta spokesperson stated, “The 2021 update did not change the privacy of personal messages and was offered as a choice for users. No one lost access to their WhatsApp accounts due to this update”.
The company clarified that the update aimed to introduce optional business features on WhatsApp and improve transparency regarding data collection and usage. Meta emphasized that WhatsApp continues to provide value to individuals and businesses alike, especially during COVID-19, by supporting small businesses and enabling essential citizen services.
Regulatory Conditions on Data Sharing
The CCI has barred WhatsApp from sharing data collected on its platform with other Meta companies for purposes beyond providing WhatsApp services. This restriction applies even for users who accepted the 2021 update.
To ensure transparency, WhatsApp must now include a detailed explanation of the type of user data shared with Meta companies and its specific purposes. Additionally, the CCI has mandated the introduction of an opt-out option through in-app notifications for all Indian users, granting them control over how their data is shared.
Path Forward for Meta and WhatsApp
Meta stated its commitment to finding a solution that aligns with the expectations of users and businesses while adhering to regulatory guidelines. The social media giant also highlighted the importance of WhatsApp’s services in fostering India’s economic growth by supporting small businesses and government initiatives.