Meta To Appeal Against CCI’s Fine & Directives In WhatsApp Matter

In addition to issuing cease-and-desist orders, the Competition Commission of India (CCI) penalised Meta Rs 213.14 crore on November 18 for abusing its dominant position regarding WhatsApp's 2021 privacy policy amendment. There are around 500 million active WhatsApp users in the nation each month.

In addition to other corrective actions, CCI has ordered WhatsApp to refrain from sharing user data gathered on its platform with other Meta products or businesses for marketing purposes for five years.

According to a press release from CCI, it has requested Meta and WhatsApp adopt specific behavioural remedies and issued cease-and-desist orders.

"The Commission also issued cease-and-desist directions and also directed Meta and WhatsApp to implement certain behavioural remedies within a defined timeline," it stated.

Meta plans to contest the fine and order. "We disagree with the CCI’s decision and plan to appeal. 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. We also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update," said a Meta spokesperson in a statement.

WhatsApp notified users in January 2021 of changes to its privacy policy and terms of service that will take effect on February 8, 2021. In contrast to the privacy policy on August 25, 2016, the revised policy required data exchange with Meta.

In March 2021, CCI began looking into WhatsApp's updated privacy policy, which allowed for mandatory data exchange with Facebook and its businesses and broadened the scope of data collecting.

It came to the conclusion that Meta Group, through WhatsApp, held a commanding lead in online display advertising in India as well as a dominant position in the market for smartphone messaging apps. The commission claims that without the ability to opt-out, the policy forces all users to agree to the extended conditions of data collection and sharing inside the Meta Group.

"Given the network effects and lack of effective alternatives, the 2021 Update forces users to comply, undermining their autonomy, and constitutes an abuse of Meta’s dominant position. Accordingly, the Commission finds that Meta (through WhatsApp) has contravened Section 4(2)(a)(i) of the Act" CCI stated.