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

  1. OTT Messaging Apps in India: WhatsApp dominates this market.
  2. Online Display Advertising in India: Meta holds a leading position compared to its competitors.

Violations

  1. 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.

  1. Denial of Market Access:

Sharing WhatsApp data with Meta companies created barriers for competitors, breaching Section 4(2)(c).

  1. 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

  1. Restrictions on Data Sharing for Advertising:

WhatsApp is prohibited from sharing user data with Meta companies for advertising purposes for five years.

  1. 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.

  1. 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.

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