Key Points
- CCI fined Meta ₹213 crore for WhatsApp’s 2021 privacy policy update.
- Meta must stop anti-competitive actions and make necessary changes.
- WhatsApp can’t share user data with Meta companies for ads for the next five years.
- Users will be able to manage their data-sharing settings by opting out.
- The fine is due to WhatsApp abusing its dominant position in messaging and advertising markets.
Looma News
On Monday, the Competition Commission of India (CCI) fined Meta ₹213.14 crore for unfair business practices related to WhatsApp’s 2021 privacy policy update. The fine is linked to how WhatsApp collected and shared user data within Meta. CCI said the update forced users to agree to mandatory data sharing, breaking competition rules.
CCI found that Meta, through WhatsApp, misused its strong position in India’s messaging app and online advertising markets. The Commission identified two markets: OTT messaging apps on smartphones and online display advertising in India. Meta’s control over both markets led to anti-competitive behavior that hurt competitors and consumers.
WhatsApp’s 2021 update required users to accept more data sharing with Meta, with no option to opt-out. CCI called this unfair and said it violated the Competition Act. The update forced users to comply, taking advantage of Meta’s market power. The action also made it harder for competitors to enter the advertising market, according to the Commission.
Along with the fine, CCI ordered Meta to stop sharing user data between WhatsApp and other Meta products for ads for five years. The Commission also told WhatsApp to clearly explain how it shares data and let users choose whether or not to share data through an opt-out option.
CCI’s ruling says that WhatsApp users in India, including those who accepted the 2021 update, must be able to opt out of sharing data that is not related to the service. All future policy updates must follow these rules.
