The Competition Commission of India (CCI) has imposed a ₹213.14 crore fine on Meta, citing abuse of its market dominance through WhatsApp’s controversial 2021 privacy policy. This policy mandated extensive data sharing between WhatsApp and other Meta services, raising concerns about user privacy and fair competition.
Key CCI Directives for Meta and WhatsApp
- Cease Data Sharing:
- WhatsApp is prohibited from sharing user data with Meta’s other services for advertising purposes for the next five years.
- Transparent Data Practices:
- WhatsApp must clearly outline what user data is shared and specify its purpose.
- Users must have the option to opt out of data sharing via in-app notifications and settings.
- Privacy Policy Reforms:
- Future updates to WhatsApp’s privacy policy must comply with the new regulations, avoiding conditional data-sharing requirements unrelated to messaging services.
Regulatory Action Against Conditional Access
After the five-year restriction, WhatsApp is barred from enforcing “take-it-or-leave-it” conditions requiring users to agree to data-sharing policies that extend beyond its core messaging services. This ensures user autonomy and limits Meta’s ability to exploit its market position.
Meta’s Market Dominance
The CCI examined two markets:
- OTT Messaging Services: Where WhatsApp holds a dominant position in India.
- Online Display Advertising: Where Meta leverages WhatsApp data to strengthen its dominance.
The investigation determined that WhatsApp’s 2021 privacy policy update leveraged its market power unfairly by restricting user choice and potentially stifling competition in the online advertising sector.
Background of the Probe
The investigation was triggered by WhatsApp’s 2021 privacy policy, which required users to accept expanded data-sharing terms or lose access to the platform. The CCI found this approach unfair under competition law, as it restricted user freedom and reinforced Meta’s dominance in both messaging and advertising.
Safeguarding Competition
The ruling highlights the CCI’s commitment to addressing monopolistic practices and ensuring fair competition in India’s growing tech ecosystem. By targeting data-sharing abuses, the regulator aims to prevent unfair advantages in digital advertising and protect consumer interests.
