Competition Commission of India Slaps ₹213 Crore Fine On Meta Over This WhatsApp Policy

India's Competition Commission (CCI) has levied a hefty fine of Rs 213.14 crore on Meta for exploiting its dominant position. The penalty also includes a restriction on WhatsApp, preventing it from sharing user data with Meta's other platforms for advertising purposes over the next five years.

The CCI's decision stems from the implementation of WhatsApp's 2021 Privacy Policy, which involved collecting and sharing user data with other Meta companies. The Commission has issued cease-and-desist orders and directed both Meta and WhatsApp to adopt specific behavioural changes within a set timeframe.

In January 2021, WhatsApp informed users about updates to its terms of service and privacy policies. An in-app notification indicated that users had to accept these terms, which included an expanded scope of data collection and mandatory data sharing with Meta companies, to continue using WhatsApp.

Previously, under the privacy policy in 2016, WhatsApp users could choose whether to share their data with Facebook. However, the 2021 update made data sharing with Meta compulsory for all users, removing the option to opt out. Users were thus compelled to accept the new terms to continue using the platform.

The CCI has not only imposed a financial penalty but also ordered WhatsApp to amend its data sharing practices significantly. The platform is now required to clearly communicate to its users the specifics of the data shared with Meta units and the purposes of such sharing.

Moreover, WhatsApp must introduce conspicuous opt-out choices for users within the app's notifications and settings, applicable to both new users and those who had accepted the 2021 privacy policy update.