CCI Penalizes Meta with ₹213.14 Crore Fine for Anti-Competitive Practices Related to WhatsApp’s 2021 Privacy Policy
The Competition Commission of India (CCI) has imposed a fine of ₹213.14 crore on Meta for abusing its dominant position through WhatsApp’s 2021 Privacy Policy update, which mandated data sharing with Meta companies. The CCI has also issued cease-and-desist orders and behavioral directives to rectify these practices.
Key Findings of the CCI
Relevant Markets
- OTT Messaging Apps in India: WhatsApp dominates this market.
- Online Display Advertising in India: Meta holds a leading position compared to its competitors.
Violations
- Imposing Unfair Conditions:
WhatsApp’s “take-it-or-leave-it” approach forced users to accept mandatory data sharing.
This undermined user autonomy, violating Section 4(2)(a)(i) of the Competition Act.
- Denial of Market Access:
Sharing WhatsApp data with Meta companies created barriers for competitors, breaching Section 4(2)(c).
- Leveraging Dominant Position:
Meta leveraged its dominance in messaging apps to bolster its position in online advertising, contravening Section 4(2)(e).
CCI’s Directives to Meta and WhatsApp
- Restrictions on Data Sharing for Advertising:
WhatsApp is prohibited from sharing user data with Meta companies for advertising purposes for five years.
- Transparency and User Control:
WhatsApp must provide detailed explanations of data sharing practices, linking data types to purposes.
Users must have the option to opt-out of data sharing for non-WhatsApp services.
Users can review and modify their data-sharing preferences through a dedicated in-app settings tab.
- Future Compliance:
All policy updates must adhere to these requirements.
Implications
User Autonomy: The directives aim to restore user control over their data.
Market Dynamics: The decision seeks to prevent Meta from leveraging its dominance to suppress competition in advertising.
Precedent: This ruling sets a strong example for enforcing data privacy and competition laws.
The public version of the order will be made available on the CCI website soon.
