In a landmark decision, the Competition Commission of India (CCI) has imposed a Rs 213 crore fine on Meta Platforms Inc. and directed its subsidiary, WhatsApp, to cease sharing user data with its parent and other sister companies. This ruling marks the first major enforcement action by CCI against a social media conglomerate for violating competition laws.
The order, issued on Monday, comes in response to changes made to WhatsApp’s privacy policy in 2021, which the CCI described as an abuse of Meta’s dominant market position. According to the commission, the policy forced users into a “take-it-or-leave-it” scenario, requiring them to agree to expanded data collection and sharing practices within the Meta group, with no option to opt out.
The revised policies of 2021 deviated from WhatsApp’s earlier 2016 stance, where users were allowed to opt out of data sharing with Facebook, Meta’s flagship social media platform. The CCI noted that this change not only exploited Meta’s substantial market leverage but also erected substantial barriers for competitors in the online advertising space by restricting their access to vital user data.
WhatsApp is given the opportunity to contest the ruling but is meanwhile required to overhaul its data-sharing policy. The platform must now provide users with a prominent option to review and modify their data-sharing preferences, ensuring genuine freedom of choice.
The CCI’s statement highlighted how Meta’s practices around data sharing were primarily aimed at fortifying its dominance in the online display advertising market, thereby stifling competition. This decision aligns with CCI’s previous actions against other tech giants, including imposing hefty fines on Google for anti-competitive practices related to Android phones and its Play Store.
