The Competition Commission of India (CCI) has imposed a penalty of Rs 213.14 crore (around $25.6 million) on Meta Platforms and directed its messaging service WhatsApp to implement strict behavioral remedies, including a five-year ban on sharing user data with other Meta entities for advertising purposes.
The CCI found WhatsApp guilty of abusing its dominant market position through its 2021 privacy policy update, which required users to accept expanded data-sharing terms with other Meta-owned platforms like Facebook and Instagram. The Commission deemed the policy’s “take-it-or-leave-it” approach as an unfair condition under Indian competition laws.
The Commission outlined several mandatory changes for WhatsApp. WhatsApp must allow users, including those who accepted the 2021 update, to opt out of data-sharing via prominent in-app notifications.
A dedicated settings tab should enable users to review and modify their data-sharing preferences. WhatsApp must provide detailed explanations of how each type of data collected is used and ensure data sharing is not a condition for using the service.
The decision significantly impacts WhatsApp’s operations in India, its largest market, with over 500 million monthly active users. The 2021 policy update had sparked widespread criticism for forcing users to accept data-sharing practices or risk losing access to the platform.
The CCI noted that Meta’s practices not only restricted user choice but also created entry barriers for rival companies. It accused Meta of leveraging WhatsApp’s dominant position in the OTT messaging space to bolster its position in online display advertising, thereby violating competition laws.
