CCI Slaps Rs 213-Crore Penalty On Meta Over WhatsApp's 2021 Privacy Policy Implementation
As part of the penalty, WhatsApp will not share user data collected on its platform with other Meta companies for advertising purposes, for five years starting Monday, CCI said.
The Competition Commission of India on Monday imposed a penalty of Rs 213.1 crore fine on Meta Platforms Inc., the parent entity of WhatsApp, for "abusing its dominant position" in the implementation of the messaging platform's privacy policy in 2021.
The action against Meta relates to how the privacy policy "was implemented and how user data was collected and shared with other Meta companies", CCI said in a release.
"The Commission also issued cease-and-desist directions and also directed Meta and WhatsApp to implement certain behavioural remedies within a defined timeline," it added.
Through its investigation, the CCI concluded that the 2021 policy update by WhatsApp on a ‘take it-or-leave-it’ basis constituted an imposition of unfair condition under the Competition Act, 2002.
"It compels all users to accept expanded data collection terms and sharing of data within Meta Group without any opt out. Given the network effects and lack of effective alternatives, the 2021 Update forces users to comply, undermining their autonomy, and constitutes an abuse of Meta’s dominant position. Accordingly, the Commission finds that Meta (through WhatsApp) has contravened Section 4(2)(a)(i) of the Act," CCI said.
Also, since Meta shared WhatsApp users’ data with other group companies and created an entry barrier for its rivals, it was found to abuse its dominant position in two markets — the OTT messaging app market and the online display advertising market, the antitrust regulator said. "Therefore, it was found to be in contravention of Section 4(2)(c) and Section 4(2)(e) of the Act."
As part of the penalty, WhatsApp will not share user data collected on its platform with other Meta companies for advertising purposes, for five years starting Monday, CCI said.
Post the five years, WhatsApp’s policy will be mandated to include a detailed explanation for the user data shared with other Meta companies.
Furthermore, the sharing of user data collected on WhatsApp with other Meta companies for purposes other than providing the messaging app's services will not be a condition for WhatsApp users in India.
As a remedy, all users in India, including users who have accepted 2021 update will be provided with a choice to opt-out through an in-app notification and also an option to review and modify their choice with respect to such sharing of data through the WhatsApp app, CCI noted.
