Meta, the parent company of WhatsApp, plans to challenge the Rs 213.14-crore penalty imposed by the Competition Commission of India (CCI) over alleged unfair business practices related to the messaging app's 2021 privacy policy update, reported news agency PTI. The penalty comes alongside directives for the company to stop anti-competitive behaviour and implement specific remedies within a stipulated timeframe.
The CCI found that WhatsApp’s privacy policy update in 2021 involved practices deemed anti-competitive, such as sharing user data with other Meta-owned applications for advertising purposes. The competition watchdog has prohibited WhatsApp from sharing such data for five years and has directed Meta to take steps to address these concerns.
According to the order, WhatsApp's policy must now include detailed explanations of what user data is shared with other Meta entities, linking each data type to its intended purpose. Additionally, the CCI mandated that sharing of user data with Meta for purposes unrelated to providing WhatsApp services should not be a prerequisite for using the app in India.
A Meta spokesperson as mentioned in the report said that the company disagrees with the CCI’s findings and intends to appeal. Defending the 2021 update, the spokesperson explained that it did not alter the privacy of users' personal messages and was optional. They clarified that no user faced account deletion or service loss for not accepting the policy.
The update, according to Meta, introduced optional business features and aimed to increase transparency around data collection and usage. The company emphasised that WhatsApp remains an essential platform in India, enabling businesses, government services, and small enterprises to operate efficiently.
"WhatsApp supports small businesses and government institutions, especially during COVID and beyond, contributing to the Indian economy. It provides these services by leveraging Meta’s infrastructure," the spokesperson added, highlighting the company's commitment to finding a solution that balances user expectations and business operations.
To address data-sharing concerns, the CCI has instructed WhatsApp to introduce an opt-out option for users in India, including those who have already accepted the 2021 policy update. This opt-out feature, which must be prominently displayed through in-app notifications, will give users control over their data being shared with other Meta entities for non-WhatsApp-related purposes.
The commission has also barred WhatsApp from using shared user data for advertising purposes and stipulated that data sharing for other purposes must be transparently communicated.
