December 22, 2024
Digital Media News

Breaking: India’s competition watchdog fines Meta Rs 213 crore over ‘unfair’ WhatsApp practices

The Competition Commission of India (CCI) has ordered a penalty of ₹213.14 on tech giant Meta over WhatsApp’s 2021 controversial privacy policy update.

Announced on Monday, the fine reflects concerns that the policy unfairly pushed users to share their data across Meta platforms, including Facebook and its units. Their prioritization of advertising and business goals over consumer privacy sparked global backlash.

“Sharing of user data collected on WhatsApp with other Meta companies… for purposes other than for providing WhatsApp service shall not be made a condition for users to access WhatsApp Service in India,” the CCI said.

Along with the penalty, the CCI also issued cease-and-desist directions, asking Meta and WhatsApp to implement corrective measures within a clearly defined timeline. As per the order, WhatsApp will not be able to share user data collected on its platform with other Meta companies for advertising purposes for a period of five years.

However, a day after the fine was announced, Meta has declared that it “disagrees” with the body’s decision and plans to appeal it.

In particular, the company’s statement highlighted that the update did not change the privacy of people’s messages.

“…the 2021 update did not change the privacy of people’s personal messages and was offered as a choice for users at the time. We also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update,” it said.

It added, “The update was about introducing optional business features on WhatsApp, and provided further transparency about how we collect and use data. And since that time, WhatsApp has been incredibly valuable to people and businesses, enabling organisations and government institutions to deliver citizen services through COVID and beyond, and as well as supporting small businesses, all of which furthers the Indian economy. WhatsApp is able to do all of this because it offers services supported by Meta.”

This decision is part of India’s broader crackdown on tech giants’ monopolistic practices and data control in the country, likely setting a precedent for how companies operate in India’s evolving digital landscape.