Meta to challenge CCI's ₹213cr penalty over WhatsApp privacy policy
What's the story
Meta, the parent company of Facebook and WhatsApp, has announced its plans to appeal against the ₹213.14 crore fine imposed by India's Competition Commission (CCI).
The tech giant was penalized for abusing its dominant position to change WhatsApp's 2021 Privacy Policy.
Responding to the fine, a Meta spokesperson said they disagree with the CCI's decision and plan to appeal it.
Policy clarification
Meta defends WhatsApp's privacy policy update
The spokesperson clarified that the 2021 update didn't change the privacy of people's personal messages.
They stressed it was pitched as an option for users, and no one would lose access to their accounts or WhatsApp services due to the update.
On Monday, the CCI ordered Meta and WhatsApp to stop sharing user data with other Meta-owned apps for advertising purposes for five years.
About the policy
New policy mandated data sharing as condition for WhatsApp usage
In January 2021, WhatsApp informed users about updates to its terms of service and privacy policy. The new policy mandated data sharing as a condition for continued WhatsApp usage.
Users were required to accept these changes by February 8, 2021. Prior to this, users had the option to choose whether or not to share their data.
Market dominance
CCI's concerns over WhatsApp's data sharing practices
The CCI has flagged two major markets in India where Meta, via WhatsApp, has a stronghold: OTT messaging apps on smartphones and online display advertising.
The commission raised concerns over the 2021 policy update being a "take-it-or-leave-it" offer restricting user choices.
It slammed Meta for using its market power to impose this change, considering it an unfair practice.
Anti-competitive behavior
CCI criticizes Meta's data sharing practices
The CCI also criticized Meta for sharing WhatsApp data with other companies in its network.
This was deemed unfair and possibly preventing other companies from entering the display ad market, breaching the Competition Act.
The commission has directed Meta to cease such practices and make certain behavioral changes within a stipulated period.
The CCI's order comes as a major blow to Meta and WhatsApp in India, their largest user market with over a billion monthly users.
User control
CCI sets new data-sharing rules for WhatsApp
The CCI has also set new data-sharing rules for WhatsApp. These rules will come into effect after a period of five years.
For non-advertising purposes, WhatsApp must provide clear explanations for its data sharing practices.
The commission also mandated that each type of data sharing must have a clear purpose and that users should have the option to opt out of data sharing within the app's settings.