© IE Online Media Services Pvt Ltd
Tags:
Journalism of Courage
India’s antitrust watchdog has fined Meta, the parent company of WhatsApp, Rs 213.14 crore for “abusing” its dominant position in relation to the messaging platform’s controversial 2021 update to its privacy policy. The Competition Commission of India (CCI) said the penalty follows over how the privacy policy was implemented, and user data was collected and shared with other Meta companies.
The Commission also issued cease-and-desist directions and directed Meta and WhatsApp to implement certain behavioural remedies within a defined timeline. As per the CCI’s order, WhatsApp will not be allowed to share user data collected on its platform with other Meta Companies for advertising purposes, for a period of five years.
In January 2021, WhatsApp had notified users that it was updating its privacy policy – which was mandatory for them to accept – with an expanded scope of data collection and data sharing between Meta companies. While users in India could not opt-out of the updated policy, WhatsApp’s users in the European Union could due to the bloc’s strong data privacy laws.
The CCI said it has concluded that the policy update on a “take-it-or-leave-it” basis “constitutes an imposition of unfair conditions” under the Competition Act.
Regarding data sharing between Meta companies, the Commission said that sharing of WhatsApp users’ data between Meta companies for purposes other than providing the messaging service “creates an entry barrier for the rivals of Meta” and “results in denial of market access in the display advertisement market”.
“Meta has engaged in leveraging its dominant position in the OTT (over the top) messaging apps through smartphones to protect its position in the online display advertising market,” in contravention of the Competition Act, the CCI said.
The CCI also said that WhatsApp’s privacy policy should include a detailed explanation of the user data shared with other Meta Companies, which should specify the purpose of data sharing, linking each type of data to its corresponding purpose.
“Sharing of user data collected on WhatsApp with other Meta Companies… for purposes other than for providing WhatsApp services shall not be made a condition for users to access WhatsApp Service in India,” the CCI said.
Meta did not respond to an immediate request for comment.
After the policy update caused furore – with several users quitting the app en masse to join rivals like Signal and Telegram – the CCI, in 2021, initiated suo motu proceedings and ordered its investigative arm, the Office of the Director General, to investigate the policy.
WhatsApp and Facebook had challenged the probe in the Delhi High Court in 2021, saying that the issue related to privacy policy was already pending before the Supreme Court and High Court at the time. In 2022, the court junked further appeals filed by the companies challenging the probe, saying that WhatsApp occupies a dominant position in the market and has a strong lock-in effect which renders its users incapable of shifting to another platform despite dissatisfaction.
