The Competition Commission of India (CCI) On Monday imposed a fine of over ₹213.14 crore on Meta for its data-sharing practices under WhatsApp’s 2021 privacy policy update for Indian users. The policy, which faced significant backlash, was eventually deferred.
“The Commission also issued cease-and-desist directions and also directed Meta and WhatsApp to implement certain behavioural remedies within a defined timeline,” the CCI stated in a press release.
The 2021 privacy policy update allowed WhatsApp to share user data with other Meta-owned platforms like Facebook and Instagram, sparking widespread criticism from privacy advocates. The controversy also triggered a surge in sign-ups for alternative platforms like Signal and Telegram.
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“The Commission has concluded that 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,” the antitrust watchdog noted. It further stated that Meta had violated Section 4(2)(a)(i) of The Competition Act, 2002.
India, with over 500 million monthly active users, remains WhatsApp’s largest market.
CCI’s Order
According to the CCI’s order, WhatsApp is prohibited from sharing user data collected on its platform with other Meta-owned companies or platforms for advertising purposes until 2029.
For data sharing beyond advertising purposes, the CCI has instructed WhatsApp to provide a “detailed explanation” outlining why the data is being shared, what data is being shared, and for what purpose. The messaging platform has also been directed to offer Indian users, including those who accepted the 2021 update, the option to opt out of data sharing for purposes other than providing its service. This opt-out option must be prominently displayed as an in-app notification, according to the agency.
Additionally, the CCI mandated that users should have “the option to review and modify their choice with respect to such sharing of data through a prominent tab in WhatsApp settings,” ensuring greater transparency and control for users.
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