Indian Govt Slaps INR 213 Crore Fine on Meta! Reason Includes WhatsApp

Remember the criticism WhatsApp faced when it introduced an updated privacy policy in 2021? The backlash was so massive that users downvoted WhatsApp on app stores and switched to alternative platforms like Signal and Telegram.

The story still hasn’t ended. India’s antitrust regulatory body, the Competition Commission of India (CCI), has fined Meta, the parent company of WhatsApp, INR 213.14 crore.

The commission has instructed WhatsApp to stop sharing data with other applications owned by Meta for advertising purposes for a period of five years.

The organisation has also accused WhatsApp of abusing its dominant position to enforce changes to its policy in 2021. For those who don’t recall the incident, here’s everything you need to know.

What was WhatsApp's 2021 privacy policy?

In 2021, WhatsApp introduced significant changes to its 2016 privacy policy. The new policy stated that WhatsApp could share users’ data with other Meta platforms for targeted advertising.

This meant that if you used WhatsApp, Meta could share your data or activities with its other platforms, like Instagram and Facebook, to show you ads tailored to your interests. It was also alleged that Meta used this data to create an entry barrier for competitors, denying them opportunities to display their advertisements.

WhatsApp made it mandatory for users to accept the policy, failing which they would have to stop using the messaging platform.

What does the CCI Say?

The CCI found Meta guilty of most allegations, stating that WhatsApp abused its position and did not provide users with the option to opt out of the privacy policy.

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

Additionally, the CCI directed Meta to include a detailed explanation of the user data shared with other Meta companies or Meta products.

The commission has also prohibited WhatsApp from sharing data with Meta for advertising purposes for the next five years.

What does Meta say?

Meta has issued a public statement expressing its disagreement with the CCI’s decision and plans to appeal against it. Meta asserts that the 2021 update did not compromise the privacy of personal messages and was offered as a choice for users at the time.

Meta also assured users that no WhatsApp accounts would be deleted or lose functionality because of the update.

ALSO READ: WhatsApp to Replace Numbers With Usernames With New Update

Our take on the Meta-CCI issue

It’s no secret that Meta has been accused of using users’ data without permission for advertising purposes or to block competitors from entering relevant markets.

Just five days ago, the European Union (EU) imposed a fine of nearly EUR 800 million on Meta for engaging in abusive marketplace practices.

The Competition Commission of India’s decision to penalise Meta and restrict WhatsApp’s data-sharing practices is a significant step towards safeguarding user rights. The Indian government should also prioritise enforcing user rights under the IT Rules 2021. This case highlights the urgent need for clear and enforceable data protection laws in India.

From Meta’s perspective, the company insists that its policy update did not compromise personal message privacy. However, the mandatory nature of the update left users feeling cornered. This raises a critical question: should platforms with dominant market positions be allowed to impose unilateral policy changes without providing users with a genuine choice?

What do you think? Share your thoughts in the embedded tweet below.

India's antitrust authority, CCI has fined #Meta Rs 213.14 crore, claiming issues with WhatsApp’s 2021 privacy policy.

Meta says it disagrees with CCI’s decision and plans to appeal against it. pic.twitter.com/kdKhPEmTLN

— Hardwire (@Hardwire_news) November 19, 2024