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

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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.

Meta Hit with EUR 798 Million Fine by EU for Abuse of Classified Ads Market Dominance

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Meta Platforms Inc. has been fined €798 million ($841 million or approximately ₹7,100 crore) by European Union regulators for violating antitrust laws, marking the tech giant’s first-ever penalty for EU antitrust violations. The fine stems from Meta’s practice of tying its Facebook Marketplace service to its broader social media platform, Facebook. This decision is a significant step in the EU’s ongoing efforts to regulate big tech companies and ensure fair competition in the digital marketplace.

The European Commission’s ruling requires Meta to cease its practice of forcing users to access Facebook Marketplace through the Facebook platform, thereby eliminating unfair advantages over competing online classified ad services. The decision also mandates that Meta stop imposing trading conditions that hinder other classified ad platforms, effectively allowing more competition in the second-hand goods market. EU antitrust chief Margrethe Vestager emphasized that Meta’s actions had harmed rivals and restricted consumer choice.

In her statement, Vestager stated, “Meta tied its online classified ads service Facebook Marketplace to its personal social network Facebook and imposed unfair trading conditions on other online classified ads service providers.” The Commission found that Meta used its dominant position in social media to promote Facebook Marketplace, disadvantaging competitors in the online classified ads space. This move, according to the EU, unfairly benefited Facebook Marketplace at the expense of rivals, such as eBay and other local classified ad platforms.

This fine highlights the European Union’s commitment to regulating the behavior of large technology companies, particularly when it comes to market dominance and anti-competitive practices. Meta now faces the challenge of restructuring its Marketplace service to comply with the EU’s ruling and avoid further penalties. As the case continues to evolve, the EU’s regulatory approach may serve as a precedent for similar investigations into other tech giants with a significant market presence.

Zomato and Swiggy Accused of Antitrust Violations by Competition Commission of India

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Indian Antitrust Probe Finds Zomato and Swiggy Breached Competition Laws
An investigation by the Competition Commission of India (CCI) has concluded that food delivery giants Zomato and Swiggy engaged in practices that violated competition laws. According to confidential documents reviewed by Reuters, these companies leveraged their dominant market positions to strike deals with select restaurants, potentially stifling competition in India’s fast-growing food delivery market.

Exclusivity Contracts and Preferential Deals
The investigation revealed that Zomato entered into exclusivity agreements with restaurant partners in exchange for reduced commission rates. Similarly, Swiggy promised business growth to specific partners if they listed their services exclusively on its platform. These arrangements provided unfair advantages to certain restaurants while limiting opportunities for others, the CCI noted. By securing exclusivity, Zomato and Swiggy potentially limited consumers’ access to broader choices and hindered smaller restaurants from gaining visibility.

Impact on Market Competitiveness
The CCI’s investigative arm stated that these exclusivity practices undermined fair competition in the food delivery ecosystem. By favoring select players, Zomato and Swiggy effectively restricted other restaurants’ ability to compete on equal footing. Such practices, the report argued, prevented the market from fostering greater competition, innovation, and better pricing for consumers.

What Lies Ahead for Zomato and Swiggy?
The findings come as both companies face scrutiny over their market dominance and operational practices. If the CCI formally rules against Zomato and Swiggy, it could result in penalties or corrective measures aimed at promoting fair competition. This case also underscores the increasing regulatory focus on ensuring balanced practices within India’s rapidly evolving digital economy. For now, the spotlight remains on how these companies address the allegations and adapt their strategies to comply with regulatory expectations.