Meta, the parent company of WhatsApp, intends to contest the Rs 213.14-crore fine imposed by the Competition Commission of India (CCI) over alleged unfair business practices concerning the messaging app’s 2021 privacy policy update. The fine is accompanied by orders for the company to cease anti-competitive conduct and to implement specific remedies within a set timeframe.
The CCI discovered that WhatsApp’s 2021 privacy policy update included actions that were considered anti-competitive, such as exchanging user data for advertising reasons with other Meta-owned apps. The competition watchdog ordered Meta to take action to resolve these issues and banned WhatsApp from sharing such data for five years.
The order mandates that WhatsApp’s policy now contain thorough justifications of the types of user data that are shared with other Meta entities, connecting each data category to its intended use. Furthermore, the CCI ordered that using WhatsApp in India shall not require sharing user data with Meta for objectives unrelated to delivering services.
According to a Meta representative quoted in the report, the firm plans to file an appeal because it disagrees with the CCI’s conclusions. The spokesperson defended the 2021 update, saying it was optional and did not change the privacy of users’ private conversations. They made it clear that refusing to accept the policy would not result in the deletion of any user’s account or loss of service.
Meta claims that the update increased transparency about data collection and utilisation and included optional business features. The firm underlined that WhatsApp continues to be a vital platform in India, facilitating the smooth operation of small companies, government services and corporations.
“WhatsApp helps the Indian economy by supporting government agencies and small enterprises, particularly during and after COVID. It uses Meta’s infrastructure to deliver these services,” the spokesman continued, emphasising the company’s dedication to identifying a solution that strikes a balance between consumer demands and corporate operations.
The CCI has directed WhatsApp to provide an opt-out option for Indian users, including those who have already approved the 2021 policy change, in order to address concerns over data sharing. Users will have control over their data being shared with other Meta entities for reasons unrelated to WhatsApp due to this opt-out functionality, which has to be clearly visible through in-app alerts.
Additionally, the commission has prohibited WhatsApp from exploiting user data that has been supplied for advertising purposes and mandated that any data sharing for other reasons be disclosed in a clear and understandable manner.
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