The Competition Commission of India (CCI) has imposed a fine of $25.4 million (approximately ₹213.14 crore) on Meta for violations related to WhatsApp’s 2021 privacy policy. The policy allowed the collection and sharing of user data with other Meta-owned entities, drawing scrutiny from regulators, according to Reuters.
The CCI has directed WhatsApp to refrain from sharing user data with Meta-owned apps for advertising purposes for the next five years.
The investigation, initiated by the CCI in March 2021, focused on WhatsApp’s privacy policy, which permitted data sharing with Facebook and its affiliates. The CCI stated that user data collected on WhatsApp should solely be used for providing services within the app and must not be conditioned on sharing information with other Meta platforms.
Impact on Two Key Markets
The CCI highlighted WhatsApp’s dominance in two markets: smartphone-based OTT messaging apps and India’s online advertising sector. It noted that WhatsApp’s 2021 privacy policy forced users to accept mandatory data-sharing conditions, removing the flexibility offered in its earlier 2016 policy.
“The 2021 policy imposed unfair conditions on users, infringing their personal autonomy and constituting an abuse of Meta’s dominant position,” stated the CCI.
The watchdog concluded that the mandatory terms in the 2021 policy undermined competition law, compelling users to comply with Meta’s expansive data collection practices.
