CCI Slaps Meta With ₹213 Crore Antitrust Fine Over WhatsApp's Privacy Policy

Competition Commission of India (CCI) has imposed a fine worth approximately ₹213.1 crore ($25.4 million) on Meta over antitrust breaches related to WhatsApp privacy policy case running since 2021. Indian antitrust watchdog said WhatsApp's parent company Meta coerced users in India to accept new terms and conditions to use chat service. controversial part of WhatsApp's new terms and conditions involves user consent to sharing of ir data “across all information categories with or Facebook Companies," as mentioned in CCI's order released in 2021.

“This relates to how WhatsApp's 2021 Privacy Policy was implemented and how user data was collected and shared with or Meta companies,” said CCI in a press release.

According to order, Meta abused WhatsApp's market position to propogate new privacy policy that "makes it mandatory for users to accept terms and conditions in order to retain ir WhatsApp account information and provides as to how it will share personalised user information with Facebook Inc." It found WhatsApp in violation of India's competition laws, saying that “ network effects working in favour of WhatsApp reinforces its position of strength and limit its substitutability with or functionally similar apps/platforms."

In a blow to WhatsApp in its biggest market, CCI has also issued cease-and-desist orders to Meta and asked it “to implement certain behavioural remedies within a defined timeline.” It ded that “ 2021 policy update by WhatsApp on a ‘take-it-or-leave-it’ basis constitutes an imposition of unfair condition under Act, as it compels all users to accept expanded data collection terms and sharing of data within Meta Group without any opt out.”

WhatsApp's 2021 Privacy Policy

In 2021, Meta restructured its platform to make way for new privacy policies, stating that it would share user data across its online properties and companies. That meant WhatsApp – flagbearer of end-to-end encryption messaging – may share data of its users with platforms such as Facebook and Instagram. Since privacy policy required user consent, WhatsApp started showing pop-ups outlining changes in terms and conditions with a button for users to accept or reject m. However, users rejecting new privacy policy found restrictions in app, causing a massive uproar, especially when rival platforms such as Telegram and Signal maintained ir privacy-centric stance on data sharing.