Meta Platforms, the parent company of WhatsApp, has announced its intention to challenge a ₹213.14-crore penalty imposed by the Competition Commission of India (CCI). The penalty was levied on Meta for alleged anti-competitive practices related to WhatsApp’s controversial 2021 privacy policy update.

The CCI, in its directive issued on Monday, instructed WhatsApp to refrain from sharing user data with other Meta-owned applications for advertising purposes for a period of five years. It further mandated Meta to cease and desist from engaging in anti-competitive practices and implement specified behavioral remedies within a set timeframe.

According to the CCI order, WhatsApp must ensure that any user data shared with Meta companies or their products for purposes other than advertising includes a detailed explanation linking each type of data to its corresponding purpose. This clarification is expected to enhance transparency and provide users with a better understanding of data usage policies.

Additionally, WhatsApp users in India, including those who had accepted the 2021 update, will be offered the choice to opt out of data sharing for purposes other than providing WhatsApp services. The CCI emphasized that such sharing must not be made a condition for accessing WhatsApp’s services in India.

Meta has strongly refuted the allegations and the penalty imposed, with a spokesperson stating that the company disagrees with the CCI’s decision. “The 2021 update did not alter the privacy of users’ personal messages and was presented as a choice for users. Accounts were neither deleted nor functionality reduced for users who chose not to accept the update,” the spokesperson clarified. The update, as per Meta, focused on introducing optional business features on WhatsApp and providing increased transparency about data collection and usage.

Highlighting the value of WhatsApp to users and businesses in India, Meta pointed out its role in delivering citizen services during the COVID-19 pandemic and its ongoing support for small businesses. “WhatsApp, supported by Meta, has become instrumental in fostering economic growth in India. We are committed to ensuring continuity in providing these valuable services,” the company representative added.

The penalty and restrictions come as part of the CCI’s broader efforts to curb anti-competitive practices in the digital ecosystem. Meta, however, maintains its stance that it has always acted within the bounds of the law and will seek legal recourse to resolve the issue. The appeal process is expected to unfold in the coming months, potentially setting a precedent for data privacy and competition regulations in India.

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