Meta to Challenge ₹213.14 Crore CCI Penalty Over Alleged Abuse of Dominant Position

Meta has announced its intent to appeal the ₹213.14 crore penalty imposed by the Competition Commission of India (CCI) for allegedly abusing its dominant position. The penalty stems from the 2021 update to WhatsApp’s privacy policy, which CCI found to involve unfair practices and anti-competitive behavior.

In a statement on Tuesday, a Meta spokesperson argued that the 2021 privacy policy update did not compromise the privacy of users’ personal messages and was presented as a voluntary choice for users.

“We ensured no one would have their accounts deleted or lose WhatsApp functionality due to the update,” the spokesperson said. “The update introduced optional business features on WhatsApp, enhancing transparency about data collection and usage. Since then, WhatsApp has provided immense value to users, businesses, and government organizations, contributing significantly to the Indian economy during and after COVID-19.”

The spokesperson reiterated Meta’s commitment to working towards solutions that uphold user and business expectations.

CCI’s Findings: Privacy Policy Deemed Anti-Competitive

The case centers on WhatsApp’s 2021 privacy policy, effective February 8, 2021, which required users to accept expanded data-sharing terms with Meta entities or lose access to the platform. This marked a departure from the 2016 privacy policy, where users could opt out of sharing their data with Facebook.

The CCI found this “take-it-or-leave-it” approach to be an unfair condition under the Competition Act. It deemed that the policy undermined user autonomy by compelling acceptance of the expanded data-sharing terms.

Cease-and-Desist Orders and Behavioral Remedies

In addition to the penalty, the CCI has issued cease-and-desist orders against WhatsApp. The Commission has mandated behavioral remedies to be implemented within a stipulated timeline, aiming to curb anti-competitive practices arising from user data sharing between Meta entities.

For a five-year period, WhatsApp is prohibited from sharing user data collected on its platform with other Meta companies for advertising purposes. After this period, specific regulatory provisions will govern data sharing between these entities.

Meta plans to contest the penalty, maintaining that the privacy update aligns with user choice and transparency. The appeal process will likely unfold in the coming months, as the company seeks to address the CCI’s concerns while continuing to provide services to users and businesses.