CCI Fines Meta ₹213 Crore Over WhatsApp Privacy Violations

The Competition Commission of India (CCI) has imposed a massive penalty of ₹213.14 crore (approximately $25.3 million) on Meta, citing abuse of its dominant market position through WhatsApp’s 2021 privacy policy update. This ruling highlights significant concerns about user consent and data-sharing practices.

The 2021 privacy policy required users to share their data with Meta-owned platforms, including Facebook and Instagram, without providing an opt-out option. This approach was deemed an unfair condition, exploiting WhatsApp’s dominance in the OTT messaging market and leaving users with no viable alternatives. The CCI concluded that these practices created barriers for competition in the advertising sector, further strengthening Meta’s hold on the market.

In addition to the penalty, the CCI issued strict directives to WhatsApp, including:

1. Ceasing data-sharing with Meta entities for advertising purposes for at least five years.
2. Offering users the option to opt out of non-service-related data sharing.
3. Ensuring that users can modify their data-sharing preferences directly within the app.
4. Clearly specifying the types of data shared with Meta companies and the purposes for such sharing.

The investigation revealed that the privacy policy update violated provisions of the Competition Act, imposing “unfair terms” on users. It also created an anti-competitive environment by restricting access to user data for potential rivals in the online advertising sector.

The ruling marks a growing regulatory pushback against tech giants, with India standing firm on issues of digital privacy and fair competition. In response, a Meta spokesperson stated, “We disagree with the CCI’s decision and plan to appeal. The 2021 update was offered as a choice, and no accounts were deleted due to non-compliance.”

This case is part of a global trend of regulatory scrutiny on Big Tech. In August 2024, a Brazilian court barred WhatsApp from sharing user data with Facebook and Instagram. Similarly, privacy concerns over the 2021 policy had sparked legal challenges worldwide.

The CCI’s investigation into WhatsApp began in March 2021, shortly after the controversial rollout. Meta and WhatsApp attempted to halt the probe, citing ongoing legal challenges in India’s higher courts. However, these efforts were dismissed by the judiciary, paving the way for the CCI’s ruling.

This penalty is a landmark move in addressing concerns around data protection, consumer rights, and the responsibility of digital platforms in upholding transparency and fairness.