Meta, the parent company of WhatsApp, has announced plans to appeal the Rs 213.14 crore fine imposed by India’s Competition Commission of India (CCI) over alleged unfair practices related to WhatsApp’s controversial 2021 privacy policy update. The company has expressed disagreement with the CCI’s findings and maintained that the policy was optional and did not compromise user privacy.

Background of the Controversy

The CCI penalized Meta for what it deemed anti-competitive behavior, particularly the sharing of user data with Meta-owned entities for advertising purposes. The commission ruled that WhatsApp’s privacy update enabled practices that abused its dominant position in the Indian market.

Key findings of the CCI included:

• Data Sharing for Ads: WhatsApp allegedly shared user data with Meta for purposes unrelated to WhatsApp’s core services.
• Lack of Transparency: The update lacked clear communication regarding the nature and purpose of data sharing with other Meta applications.

Meta’s Defense

A Meta spokesperson stated that the company “disagrees” with the CCI’s decision and plans to challenge the penalty in court. Defending the 2021 update, Meta clarified:

• The update was optional and aimed at introducing business features to enhance transparency.
• No user accounts were deleted, nor was service restricted for declining the policy.
• User privacy for personal messages remained unaffected.

Meta emphasized WhatsApp’s pivotal role in supporting small businesses, government institutions, and enterprises in India, highlighting its contribution to the Indian economy during the pandemic and beyond.

CCI’s Directives for Meta and WhatsApp

To address the concerns, the CCI issued a set of requirements:

1. Opt-Out Option: WhatsApp must allow Indian users, including those who previously accepted the 2021 policy, to opt out of data sharing with Meta for non-WhatsApp-related purposes. This option must be prominently displayed through in-app notifications.
2. No Advertising Use: Data shared with Meta cannot be used for advertising purposes for five years.
3. Transparent Communication: WhatsApp must provide detailed explanations linking each data type shared to its intended purpose.

Meta’s Position on Data Practices

Meta reiterated its commitment to balancing user expectations with business needs, stating that the update introduced features to benefit businesses and users alike. The company argued that leveraging Meta’s infrastructure allowed WhatsApp to remain a vital platform for businesses and services in India.

Looking Ahead

As Meta prepares to appeal the CCI’s ruling, the case underscores the growing scrutiny of big tech companies in India regarding data privacy and competition. The outcome of this legal challenge could set a precedent for how digital platforms handle user data and transparency in the country.