India's antitrust watchdog has fined WhatsApp's parent company Meta Rs 213.14 crore for "abusing its dominant position" in connection with the controversial 2021 update of the messaging platform's privacy policy. The Competition Commission of India (CCI) said the penalty is based on how the privacy policy was implemented and how user data was collected and shared with other meta companies.
The Commission also issued instructions to shut down and directed Meta and WhatsApp to implement certain behavioural measures within a stipulated time frame. As per the CCI order, WhatsApp will not be allowed to share user data collected on its platform with other meta companies for advertising purposes for a period of five years.
In January 2021, WhatsApp had informed users that it was updating its privacy policy — which was mandatory for them to accept — including the expanded scope of data collection and data sharing between meta companies. While users in India could not opt-out of the updated policy, WhatsApp's users in the EU could do so due to the bloc's strong data privacy laws.
The CCI said it concluded that the policy update based on "take it or leave it" is to "impose unfair conditions" under the Competition Act. Regarding data sharing among Meta companies, the Commission said that sharing of WhatsApp users' data among Meta companies is for purposes other than providing messaging service.
"Meta has engaged in leveraging its dominant position in OTT messaging apps through smartphones to protect its position in the online display advertising market in violation of the Competition Act," the CCI said.
The CCI also said that WhatsApp's privacy policy should include a detailed description of user data shared with other meta companies, specifying the purpose of sharing the data, linking each type of data to its respective purpose.
After the policy update caused an uproar — many users left the app en masse to join rivals like Signal and Telegram — the CCI initiated suo motu proceedings in 2021 and ordered its investigation branch, the office of the director general, to examine the policy.
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