Meta to appeal ₹213 crore penalty by India's antitrust body over WhatsApp privacy policy update

Meta on Tuesday expressed strong disagreement with the Competition Commission of India’s (CCI) decision to impose a ₹213.14 crore fine for alleged anti-competitive practices linked to WhatsApp's 2021 privacy policy update. The tech giant also said it plans to appeal the ruling, maintaining that the update was fair and transparent.

"As a reminder, the 2021 update did not change the privacy of people's personal messages and was offered as a choice for users at the time," PTI quoted a Meta spokesperson as saying.

"We also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update," the spokesperson added.

CCI ruling against Meta

The antitrust body on Monday imposed a ₹213.14 crore penalty on Meta Platforms, Inc., citing abuse of its dominant position in the implementation of WhatsApp’s 2021 privacy policy update. The decision also includes cease-and-desist directions and behavioural remedies to be implemented by Meta and WhatsApp within a stipulated timeframe.

WhatsApp's 2021 privacy policy update mandated users to accept expanded data-sharing terms with Meta companies to continue using the service. Unlike the earlier 2016 policy, which allowed users to opt out of data sharing, the new update removed this option, introducing a "take-it-or-leave-it" condition for its 530 million Indian users, according to the CCI.

The Commission concluded that this update imposed unfair terms on users and constituted a violation of Section 4(2)(a)(i) of the Competition Act. It further held that data sharing between Meta companies for purposes beyond WhatsApp services created entry barriers for competitors in online display advertising and amounted to leveraging a dominant position, contravening Sections 4(2)(c) and 4(2)(e) of the Act.

To address the anti-competitive concerns, the CCI issued directive which barred WhatsApp from sharing user data collected on its platform with Meta companies for advertising purposes for the next five years.

It also asked WhatsApp to provide an opt-out option for users regarding data sharing for non-advertising purposes and allow them to modify their choice via an in-app setting.

"All future policy updates shall also comply with these requirements," it said.

Meta insisted that the update was about introducing optional business features on WhatsApp, and provided further transparency about data collection and usage.

Since that time, WhatsApp has been incredibly valuable to people and businesses, enabling organisations and government institutions to deliver citizen services through COVID and beyond, and as well as supporting small businesses in furtherance of the India economy, the spokesperson added.

"WhatsApp is able to do all of this because it offers services supported by Meta. We are committed to finding a path forward that allows us to continue providing the experiences that people and businesses have come to expect from us," the Meta spokesperson said.