Competition Commission Of India Slaps Rs 213.14 Crore Penalty On Meta; Restricts Data Usage

The Competition Commission of India (Commission), on Monday, imposed a penalty of Rs 213.14 crore on Meta for ‘abusing its dominant position’. The commission also imposed certain restrictions on the Meta-owned platform regarding data sharing and added that WhatsApp’s policy should include a detailed explanation of the user data shared with other Meta Companies or Meta Company products.

CCI Penalty On Meta: What's The Matter?

Citing a 2021 update by WhatsApp, CCI said that the policy update by Meta did not give its users the option to opt-out while continuing to use the messaging app. The order said that the said WhatsApp update was on a ‘takeit-or-leave-it’ basis and constituted an 'imposition of the unfair condition under the Act', as it compelled all users to accept expanded data collection terms and sharing of data within Meta Group without any opt-out.

No 'opt-out' option on WhatsApp policy update: CCI

"This relates to how WhatsApp's 2021 Privacy Policy was implemented and how user data was collected and shared with other Meta companies," CCI said in a statement. The Commission also issued cease-and-desist directions and also directed Meta and WhatsApp to implement certain behavioural remedies within a defined timeline.

CCI also directed WhatsApp to not share user data collected on its platform with other Meta Companies or Meta Company Products for advertising purposes 'for a period of 5 (five) years from the date of receipt of this order'. CCI asked Meta, the parent company of WhatsApp to provide the users with the choice to manage such data sharing by way of an opt-out option prominently through an in-app notification; and the option to review and modify their choice with respect to such sharing of data through a prominent tab in the settings of WhatsApp application.