CCI Orders Meta to Stop Sharing WhatsApp User Data, Imposes Rs 213 Crore Penalty, Meta Likely to Appeal Decision

Highlights

• CCI has fined Meta Rs 213.14 crore and barred WhatsApp from sharing user data.
• WhatsApp must provide clear explanations of shared user data and offer an opt-out option.
• Meta disagrees with the decision and plans to appeal.

The Competition Commission of India (CCI) has fined Meta Rs 213.14 crore accusing the company of anti-competitive practices linked to WhatsApp’s 2021 privacy policy update.

Moreover, the CCI has barred WhatsApp from sharing user data with other Meta-owned apps for advertising purposes for five years.

Alongside the fine, the CCI has ordered Meta to cease and desist from anti-competitive practices. WhatsApp must also implement specific behavioural remedies within a defined timeline.

The regulator has prohibited WhatsApp from sharing user data with other Meta companies for advertising purposes for five years.

In its order, CCI has also set strict guidelines on how WhatsApp can share data for non-advertising purposes.

CCI imposes a monetary penalty of ₹213.14 crore on Meta for 2021 Privacy Policy Update, along with a cease-and-desist direction and specific behavioral remedies. pic.twitter.com/JUNCHP9oF0

— CCI (@CCI_India) November 18, 2024

WhatsApp must provide a clear explanation of what user data is shared with other Meta companies. It also instructed Meta to give an opt-out option via in-app notifications to manage data sharing to all users, including those who accepted the 2021 update.

Moreover, data sharing for purposes beyond WhatsApp services cannot be made a condition for users to access the platform in India.

Meanwhile, Meta has expressed its disagreement with the decision and plans to appeal.

A company spokesperson said, “As a reminder, 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.”

According to Meta, the 2021 update introduced optional business features and aimed to enhance transparency about data collection and usage.

The company also emphasised WhatsApp’s role in supporting users, businesses, and government services during the COVID-19 pandemic and beyond.

On this, the company spokesperson said, “We are committed to finding a path forward that allows us to continue providing the experiences that people and businesses have come to expect from us.”

FAQs

Q1. Why did the CCI fine Meta Rs 213.14 crore?

Answer. The CCI fined Meta Rs 213.14 crore for anti-competitive practices related to WhatsApp’s 2021 privacy policy update.

Q2 What has the CCI ordered regarding WhatsApp’s user data-sharing practices?

Answer. The CCI has prohibited WhatsApp from sharing user data with other Meta-owned apps for advertising purposes for five years and set strict guidelines on how user data can be shared for non-advertising purposes.

Q3. What is Meta’s response to the CCI’s decision?

Answer. Meta disagrees with the decision and plans to appeal stating that the 2021 update did not change the privacy of personal messages and introduced optional business features.

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