CCI Fines Meta Rs 213 Crore; Company to Challenge the Ruling

The Competition Commission of India (CCI) has imposed a significant penalty of Rs 213.14 crore on Meta, citing concerns over WhatsApp’s 2021 privacy policy update. The CCI ruled that WhatsApp’s update to its privacy policy led to unfair business practices, especially regarding the sharing of user data with other Meta-owned applications for targeted advertising. As part of the ruling, the CCI has instructed WhatsApp to stop sharing user data with its other platforms for advertising purposes for the next five years.

In addition to the hefty fine, the CCI has ordered Meta to halt its anti-competitive practices and implement corrective measures. These include specific behavioural remedies, which must be enacted within a defined timeline, to address the issues related to the company’s approach to competition. The ruling is seen as a significant step by India’s competition watchdog to ensure fair practices in the digital space, particularly concerning the handling of user data and the impact on market competition.

Meta has expressed strong disagreement with the decision and intends to appeal the ruling. A spokesperson for the company clarified that the 2021 update did not alter the privacy of personal messages and was introduced as an optional update for users at the time. The spokesperson further emphasized that no user would lose access to their account or its features due to the privacy policy change, asserting that the update was designed with user choice in mind.

This ongoing legal challenge marks the latest chapter in a series of regulatory actions taken against tech giants, particularly in relation to user privacy and data protection practices. Meta’s appeal will likely be closely watched, as it could set a precedent for how similar cases involving digital privacy and anti-competitive behavior are handled in India and beyond.