The CCI on Monday (November 18, 2024) imposed a fine of ₹213.14 crore on social media major Meta for unfair trade practices relating to WhatsApp’s privacy policy update carried out in 2021. | Photo credit: REUTERS

After the Competition Commission imposed a ₹213 crore penalty on Meta Regarding WhatsApp’s privacy policy, the company said it disagreed with the watchdog’s decision and was considering an appeal.

The Competition Commission of India (CCI) on Monday (November 18, 2024) imposed a fine of ₹213.14 crore on social media major Meta for unfair trade practices with regard to WhatsApp Privacy Policy Update carried out in 2021.

“We do not agree with the decision of the Competition Commission of India and are considering an appeal,” a Meta spokesperson said on Tuesday, November 19, 2024, in reaction to the CCI fine of 212 million ₹ to WhatsApp for changing its privacy policy in 2021.

India’s competition watchdog has imposed a penalty of ₹213.14 crore on the social media giant for unfair trade practices with respect to WhatsApp’s privacy policy update made in 2021. Further, the competition watchdog ordered Meta to cease and desist from anti-competitive practices.

Meta and WhatsApp have also been asked to implement certain behavioral remedies within a defined time frame to resolve the anti-competitive issues, according to an order by the CCI.

Starting January 2021, WhatsApp notified users about updates to its terms of service and privacy policies.

The in-app notification, which took effect on February 8, 2021, stated that users must accept these terms, including the expanded scope of data collection as well as the mandatory sharing of data with Meta companies, to continue using WhatsApp.

Under the previous privacy policy dated August 25, 2016, WhatsApp users had the option to decide whether they wanted to share their data with Facebook, the statement said.

“However, with the latest policy update in 2021, WhatsApp has made sharing data with Meta mandatory for all users, removing the previous opt-out option. As a result, users had to accept the new terms, which include sharing data with Meta, in order to continue using the platform,” he adds.

The watchdog concluded that WhatsApp’s 2021 policy update on a “take it or leave it” basis constitutes an imposition of unfair conditions under competition law, as it requires all users to accept expanded conditions for data collection and data sharing. data within Meta Group without any withdrawal option.

“Given network effects and the lack of effective alternatives, the 2021 update forces users to comply, infringing on their autonomy, and constitutes an abuse of Meta’s dominant position. Accordingly, the Commission finds that Meta (via WhatsApp) contravened section 4(2)(a)(i) of the Act,” it said.

Furthermore, CCI said that sharing WhatsApp user data between Meta companies for purposes other than providing the WhatsApp service creates a barrier to entry for Meta’s competitors and therefore results in denial of access to the WhatsApp service. display advertising market.

According to the regulator, Meta committed to leveraging its dominant position in OTT messaging applications via smartphones to protect its position in the online display advertising market, in violation of competition law.

CCI has banned WhatsApp from sharing the data collected on its platform with other Meta companies or Meta company products for advertising purposes for five years and the exclusion period will begin from the date of receipt of this order .

Regarding sharing of WhatsApp user data for purposes other than advertising, the regulator said WhatsApp’s policy should include a detailed explanation of user data shared with other Meta companies or with the company’s products Meta.

“This explanation should clarify the purpose of data sharing, linking each type of data to the corresponding purpose,” he says.

The watchdog also said that sharing user data collected on WhatsApp with other Meta companies or Meta company products for purposes other than providing WhatsApp services will not be a condition for users to access to the WhatsApp service in India.

Regarding the sharing of WhatsApp user data for purposes other than providing WhatsApp services, CCI said that all users in India (including users who have accepted the 2021 update) will have the choice to manage this sharing data by means of a clearly visible unsubscribe option. via an in-app notification.

Additionally, the regulator has requested the ability to review and change its choice regarding this data sharing via a prominent tab in the WhatsApp app settings, and all future policy updates should be consistent with these requirements.