CCI bars WhatsApp from sharing data with Meta firms, slaps Rs 213 cr fine

Second instance of big tech penalised for abusing dominant position

The Competition Commission of India (CCI) on Monday levied a Rs 213.14 crore penalty on Meta Platforms for abusing its dominant market position through WhatsApp’s 2021 Privacy Policy. The ruling relates to how the policy was implemented and the manner in which user data was collected and shared with other Meta companies.

 

In addition to the fine, the antitrust body has issued cease-and-desist directives, requiring Meta and WhatsApp to implement specific behavioural remedies within a stipulated timeline.  

 

The CCI has ordered WhatsApp to cease sharing user data with Meta companies for advertising purposes for five years. Following this period, users must be provided the choice to opt out of non-service-related data sharing. 

 

Additionally, WhatsApp must outline the specific data shared with Meta entities, its usage, and the purposes served.

 

The latest decision is a significant setback for WhatsApp, whose largest user base is in India of 500 million.

 

Attempts to secure comments from Meta in this connection remained unanswered at the time of publication.

 

The watchdog’s decision stems from WhatsApp's 2021 Terms of Service and Privacy Policy updates, which mandated users to accept expanded data-sharing terms with Meta companies to continue using the app. 

 

In-app WhatsApp notifications at the time required users to accept the updated terms by February 8, 2021. This differed from the prior policy dated August 25, 2021, which allowed WhatsApp users to opt out of data sharing with Facebook. 

 

The commission concluded: “…the 2021 policy update by WhatsApp on a ‘take it-or-leave-it’ basis constitutes an imposition of unfair condition under the Act, as it compels all users to accept expanded data collection terms and sharing of data within Meta Group without any opt out.”

 

Last year, the CCI had imposed a fine of Rs 1,338 crore on Google in the Android case and asked the tech giant to make considerable changes to its business model.