India's competition watchdog orders WhatsApp to stop sharing user data with other meta sectors for advertising purposes for five years, as well as antitrust laws related to WhatsApp's controversial 2021 privacy policy It imposed a $25.4 million fine for the violation.
The Competition Commission of India, which launched an investigation in 2021, found that WhatsApp's 'take it or leave it' privacy update could threaten meta dominance by forcing users to accept expanded data collection without an opt-out option. It was determined that this constituted an abuse of position. .
WhatsApp's 2021 privacy policy update requires users to share data with meta companies to continue using the messaging service and removes an opt-out option that existed since 2016. Mandatory data sharing requirements have expanded the scope of data collection and processing. By Meta group companies.
The watchdog determined that Meta is dominant in two key markets: so-called “over-the-top” messaging apps through smartphones in India and online display advertising.
It concluded that WhatsApp's data-sharing mandate created a barrier to entry for Meta's rivals, leading to a denial of market access to the display advertising market.
In addition to the financial penalty, the CCI mandated significant changes to WhatsApp's data practices in India.
Messaging platforms should provide detailed instructions to users about what data is shared with meta-companies and for what purposes. You must also provide users with a prominent opt-out option through in-app notifications and settings menus, and apply these changes to both new and existing users who accept the 2021 Update.
The ruling represents the latest regulatory challenge for Meta in India, where WhatsApp has more than 450 million monthly active users.