Meta vs CCI: Watchdog Says No Conflict Between Competition, Data Protection Laws

Competition Act supplements data protection regulations by placing heightened responsibilities on dominant firms and re is no inherent conflict or repugnance between two laws, according to fair tre watchdog CCI. Besides, regulator has said a broer view of concept of user data is crucial in analysing data-related competition concerns in digital markets.

observations are part of Competition Commission of India's 156-page order imposing a Rs 213.14 crore penalty on social media major Meta for unfair business ways with respect to WhatsApp privacy policy update done in 2021.

Elucidating about user data in digital markets, CCI said data-related practices might violate data protection laws but y can also be seen as imposition of unfair terms under competition law.

"This overlap creates a point of intersection between data protection and competition law, with each dressing different aspects of harm. Furr, while data protection laws primarily focus on processing of personal data, competition law can also intervene when non-personal but competition-sensitive data is abused," it said.

In this context, CCI noted that it is important to recognise that concept of "user data" in digital platforms encompasses not just personal data, but also anonymised and aggregated data, which may not always align with tritional definitions of personal data.

"This broer view is crucial when analysing data-related competition concerns in digital markets," it ded.

According to regulator, order, passed on November 18, relates to how WhatsApp's 2021 Privacy Policy was implemented and how user data was collected and shared with or Meta companies. For case, two relevant markets were delineated -- OTT messaging apps through smartphones in India, and online display vertising in India.

At a time when re are concerns about data privacy and possible misuse of user data, CCI, in order, also highlighted that data-related practices can sometimes trigger concerns that require simultaneous intervention from multiple branches of law.

"For instance, data-driven conduct by a dominant firm may raise privacy concerns under data protection law and also constitute an abuse of market dominance under competition law. refore, a comprehensive approach is necessary to create a market structure that is competitive, transparent, and beneficial to consumers in terms of price, quality, privacy, choice, etc," order said.

According to CCI, diverse data collected by digital platforms plays a crucial role in enhancing product quality, improving services, and boosting overall productivity.

"Furrmore, insights gained from diverse data facilitate discovery of new business opportunities and support option of more targeted business models, such as personalized services, which enhance customer engagement and satisfaction.

" competitive strength of enterprises in se markets is now increasingly measured by amount, diversity, and quality of data y control. refore, access to and effective use of data are crucial factors that determine competitiveness and market power of digital enterprises," it said.

Meanwhile, Meta has said it disagrees with CCI's order and plans to appeal against it.