Meta announced today that it will appeal the ₹213.14 crore penalty imposed by the Competition Commission of India (CCI), rejecting the allegations related to WhatsApp’s controversial 2021 privacy policy update.
A company spokesperson emphasised that the update did not change the privacy of people’s personal messages and was offered as an optional choice for users, with no one losing access to WhatsApp.
He said, “The 2021 update did not change the privacy of people’s personal messages and was offered as a choice for users. No one lost access to WhatsApp because of this update.”
The fine, imposed on Monday by CCI, accused Meta of anti-competitive practices. Along with the penalty, the CCI also issued cease-and-desist directions and mandated that corrective measures be implemented within a stipulated timeline.
Defending its position, Meta argued the update was focused on introducing optional business features and enhancing transparency about data usage. The company also underscored WhatsApp’s critical role in connecting people and businesses, particularly during the pandemic, as per PTI.
The CCI’s ruling highlighted significant concerns over user consent and transparency. It instructed WhatsApp to provide clear, detailed explanations about how user data is shared with other Meta platforms.
CCI said the policy must outline the types of data shared, its specific purposes, and the nature of any link between the two. The regulator emphasised that no user should be compelled to agree to data sharing beyond WhatsApp’s core services as a condition for using the app in India.
What was the CCI order?
The regulator accused the company of leveraging its dominant market position to force unfair terms on users. The penalty was accompanied by a directive barring WhatsApp from sharing user data with Meta-owned applications for advertising purposes for the next five years, as per PTI.
To further safeguard user rights, CCI ordered WhatsApp to offer all users, including those who previously accepted the update, an opt-out option. This option must be prominently displayed through in-app notifications to ensure accessibility.
What was WhatsApp’s 2021 privacy policy?
In January 2021, WhatsApp introduced updates to its terms of service and privacy policy, notifying users via in-app prompts. Effective February 8, 2021, the new policy required users to accept expanded data collection terms, including mandatory sharing of user data with other Meta companies.
(With inputs from agencies)
