Messaging app WhatsApp’s parent company Meta is planning to challenge the Competition Commission of India’s order imposing a Rs 213-crore penalty over it for its 2021 privacy policy update and anti-competition practices. A spokesperson of the company said they disagree with the regulator’s decision and would appeal against it.
"As a reminder, the 2021 update did not change the privacy of people's personal messages and was offered as a choice for users at the time. We also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update," PTI reported quoting Meta’s spokesperson.
Meta also challenged CCI’s order restricting it from sharing WhatsApp data with other Meta platforms for advertising purposes. Owned by tech giant Mark Zuckerberg, Meta said WhatsApp has been incredibly valuable to people and businesses for delivery of services in India, through Covid and beyond.
The CCI on Monday imposed a penalty of 213.14 crore on Meta for abusing its dominant position in the industry and for the means it “imposed” privacy policy update on users in 2021. The regulator observed that while WhatsApp’s 2016 privacy policy gave users the option to opt out of sharing data with Facebook, in its 2021 policy update, WhatsApp made data sharing “mandatory” for all users.
“With the latest policy update in 2021, WhatsApp made data sharing with Meta mandatory for all users, removing the earlier option to opt out. As a result, users had to accept the new terms, which include data sharing with Meta, in order to continue using the platform," CCI said in its order.
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CCI said the privacy policy update was an “imposition of unfair condition under the Competition Act” and found the tech firm contravened Section 4(2)(a)(i) of the Act, PTI reported. Besides the penalty, the CCI has restricted WhatsApp from sharing its data with other Meta companies or Meta company products for advertising purposes for five years. It also asked Meta to implement certain behavioural remedies within a defined timeline to address the anti-competition issues.
However, Meta is contesting the order saying WhatsApp is able to deliver various services due to its data sharing with its sister platforms. “WhatsApp is able to do all of this because it offers services supported by Meta. We are committed to finding a path forward that allows us to continue providing the experiences that people and businesses have come to expect from us," it said.
