The Competition Commission of India said Meta through WhatsApp breached Section 4(2)(a)(i) of The Competition Act, 2002
The Competition Commission of India (CCI) on Monday imposed a penalty of Rs 213.14 crore on Meta for its anti-competitive practices in relation to WhatsApp’s 2021 Privacy Policy Update. It also issued a cease-and-desist directions, while directing the social media giant to implement certain behavioural remedies within a defined timeline.
"The Commission has concluded that the 2021 policy update by WhatsApp on a ‘take-it-or-leave-it’ basis constitutes an imposition of unfair condition under the Act, as it compels all users to accept expanded data collection terms and sharing of data within Meta Group without any opt out," the watchdog said in an official statement.
It added Meta through WhatsApp breached Section 4(2)(a)(i) of The Competition Act, 2002. India, with more than 500 million monthly active users, counts as the largest market for WhatsApp.
The Commission has directed that WhatsApp is not allowed to share user data collected on its platform with other Meta Companies or Meta Company Products for advertising purposes till 2029.
It stated that WhatsApp's policy should include a detailed explanation of the user data shared with other Meta Companies or Meta Company Products. This explanation should specify the purpose of data sharing, linking each type of data to its corresponding purpose, the statement read.
"Sharing of user data collected on WhatsApp with other Meta Companies for purposes other than for providing WhatsApp services shall not be made a condition for users to access WhatsApp Service in India," it added.
In addition, all users in India (including users who have accepted 2021 update) will be provided the choice to manage such data sharing by way of an opt-out option prominently through an in-app notification, the central agency said.
The users will also get an option to review and modify their choice with respect to such sharing of data through a prominent tab in settings of WhatsApp application, the order said.