Athira Sethu
Kochi, 20 November 2024
The Competition Commission of India has recently imposed a penalty of Rs 213.14 crore on Meta, the parent company of WhatsApp, for allegedly unfair business practices related to the update in WhatsApp’s privacy policy in 2021.
Meta, the owner of WhatsApp, will contest the verdict and is going to appeal against it. The penal order also contains a stoppage of certain anti-competitive practices of the company and the redressal of the issues within a timeframe.
The CCI found that the 2021 update to WhatsApp’s privacy policy allowed a consolidation of user data with other Meta-owned applications for advertising purposes. In its decision, the CCI came to the conclusion that it was unfair and anti-competitive. As part of the ruling, the CCI has banned WhatsApp from sharing user data for five years and ordered them to take measures that address the issue raised by the commission.
The CCI has also asked WhatsApp to update its privacy policy that will clearly explain what kind of user data is shared with other Meta companies and why. The company should clearly indicate what kind of data is shared and for what purpose. The CCI has also clarified that it should not force users to share their data with Meta for purposes other than using the app in India.
Meta has said that it disagrees with the decision of the CCI and would appeal it. Meta’s spokesperson to the media defended the update saying that the 2021 update did not impact the private nature of their users’ personal messages. The company noted further that the acceptance of the new terms was optional as no one had to accept the policy and lose his/her account for refusing the new update. Meta also claimed that the new version included business features and was oriented to maintain more transparency on data collection and usage.
Meta pointed out how WhatsApp serves a critical purpose for Indian economy businesses, government services, and small enterprises. The company said that the services of WhatsApp are essential to its purpose in engaging Indian economy activities, especially during the COVID-19 pandemic, and that they rely on Meta’s infrastructure to keep running.
To address the concerns on data sharing, the CCI has ordered WhatsApp to provide an opt-out option to its users in India. The option should be accessible through in-app notifications so that users have control over sharing their data with other Meta companies for purposes other than WhatsApp. The CCI also banned it from using shared user data for advertisement purposes and demanded other purposes of data sharing ought to be communicated clearly.
The CCI ruling simply requires WhatsApp to change its privacy policy and the method used in handling user data. Meta, however, opposes the judgment and has filed an appeal challenging the decision at court.
