The Competition Commission of India (CCI) has fined Meta, the parent company of Facebook, Instagram, and WhatsApp, Rs. 213 crore for alleged antitrust violations. According to CCI, Meta engaged in unfair trade practices that violated India’s competition law. The investigation began last year and focused on allegations that Meta abused its dominant position in the social media and digital communication market to stifle competition and limit consumer choice.
In the 2021 privacy policy, the CCI ordered WhatsApp not to share user data collected on its platform with other Meta companies or products for advertising purposes for five years. The CCI concluded that the policy update on a ‘Take-it-or-leave-it’ basis ‘constitutes an imposition of unfair conditions’ under the Competition Act.
“Meta has engaged in leveraging its dominant position in the OTT (over the top) messaging apps through smartphones to protect its position in the online display advertising market,” in contravention of the Competition Act, the CCI said.
The CCI also said that WhatsApp’s privacy policy should include a detailed explanation of how users’ data is used with other platforms.
“Sharing of user data collected on WhatsApp with other Meta Companies… for purposes other than for providing WhatsApp services shall not be made a condition for users to access WhatsApp Service in India,” the CCI said.
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However, Meta, a US-based firm, did not respond to an immediate request for comment.
Several people quit the app in a few days due to data sharing and joined rivals like Telegram. WhatsApp and Facebook had challenged the probe in the Delhi High Court in 2021 for public concern. WhatsApp is the dominant player in messaging apps. Is it easy to shake its position in the social media market?
