Social media company Meta said it does not agree with the Competition Commission of India (CCI)'s decision to impose a fine of Rs 213.14 crore on it and plans to appeal against it. The Competition Commission of India (CCI) on Monday imposed a fine of Rs 213.14 crore on social media company Meta. This fine was imposed for adopting unfair business practices in relation to WhatsApp's privacy policy update in 2021. Further, CCI has directed Meta to cease and desist from anti-competitive behaviour. According to the CCI order, Meta and WhatsApp have also been asked to implement certain practical measures within a certain deadline to address anti-competitive issues.
A Meta spokesperson said the company disagrees with the CCI's decision and plans to appeal against it. The spokesperson said that it is noteworthy that the 2021 update did not make any changes to the privacy of people's personal messages and it was introduced as an option for users at that time. We also ensured that this update does not delete any account or disrupt WhatsApp service. Meta said that this update is about introducing optional business features on WhatsApp. It also provides more transparency about data collection and use.
A Meta spokesperson said that since that time WhatsApp has been incredibly valuable to people and businesses. This has enabled organizations and government institutions to provide citizen services during the COVID-19 pandemic and beyond. It has also helped small businesses in taking India's economy forward. The spokesperson said that WhatsApp is able to do all this because it provides services supported by Meta. We are committed to finding a way forward that enables us to continue providing people and businesses the experiences they expect from us.
Meanwhile, CCI has banned WhatsApp for five years from sharing the data collected on its platform with other meta companies or meta company products for advertising purposes. On sharing WhatsApp users' data for purposes other than advertising, the regulator said WhatsApp's policy should include a detailed description of user data shared with other meta companies or meta company products. It says that the purpose of sharing data should be made clear in this clarification and each type of data should be linked to its relevant purpose.
The regulator said that sharing user data collected on WhatsApp with other meta companies or meta company products for purposes other than providing WhatsApp services should not be mandatory for users using WhatsApp in India. On sharing of WhatsApp user data for purposes other than providing WhatsApp services, CCI said all users in India (including users who have accepted the 2021 update) will be given the opportunity to opt out of the service through in-app notifications. The option to manage such data sharing will be provided through an opt-out option.
