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Meta to Challenge India Antitrust Order on WhatsApp Data Sharing

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Meta Disagrees with India’s CCI Ruling and Plans Legal Action

Meta Platforms (META.O) has announced its intention to mount a legal challenge against an order from India’s Competition Commission (CCI), which imposes restrictions on data-sharing between WhatsApp and other Meta-owned applications. The CCI’s decision, which also includes a $25.4 million fine, stems from antitrust violations linked to WhatsApp’s 2021 privacy policy update.

CCI’s Restrictions and Fine

The CCI directed WhatsApp to cease sharing user data for advertising purposes with other Meta-owned platforms for five years. This decision follows an investigation that began in March 2021 into WhatsApp’s privacy policy, which allowed data sharing between WhatsApp and other Meta services. The policy update sparked significant global concern, leading to the antitrust investigation.

The CCI’s ruling prohibits Meta from making user data sharing a condition for accessing WhatsApp services in India.

Meta’s Response

Meta has strongly disagreed with the CCI’s ruling. A spokesperson for the company clarified that the 2021 privacy policy update did not alter the privacy of users’ personal messages on WhatsApp. Furthermore, Meta assured that no users would lose access to their accounts or the functionality of WhatsApp as a result of the update. Meta plans to challenge the CCI’s decision in court.

CCI Withdraws Flipkart Antitrust Report Following Xiaomi’s Objection

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CCI Recalls Flipkart Antitrust Report Over Xiaomi Complaint
India’s Competition Commission of India (CCI) has retracted its investigation report on Walmart-owned Flipkart over alleged breaches of competition law. This marks the second instance of such a withdrawal by the antitrust regulator, following a similar action involving Apple in August. The move highlights the ongoing challenges faced by the CCI in balancing transparency with confidentiality in its probes.

Xiaomi’s Objection Over Confidentiality Breach
The recall follows a complaint by Chinese electronics giant Xiaomi, which argued that the report contained sensitive commercial information that should have been redacted. In September, Reuters revealed that the report had found Flipkart, certain affiliated sellers, and smartphone makers in violation of competition laws. Xiaomi claimed the document exposed business secrets, prompting the CCI to reassess its handling of confidential material.

Recipients Ordered to Destroy Report Copies
As per an internal CCI document dated October 1, the regulator has instructed all recipients of the Flipkart antitrust report to destroy their copies and provide an undertaking confirming compliance. This directive aims to prevent further distribution of the sensitive information while safeguarding the integrity of future investigations.

Implications for Antitrust Oversight in India
The recall underscores the growing complexity of antitrust enforcement in India, especially in cases involving global tech giants and their local operations. While the CCI seeks to hold firms accountable for anti-competitive practices, the need to protect proprietary data remains a critical concern. As high-profile cases like this unfold, the regulator may face increasing pressure to refine its protocols for handling and sharing investigation reports.

Capital One Faces Possible CFPB Action Over Savings Account Practices

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Capital One has disclosed a potential enforcement action from the Consumer Financial Protection Bureau (CFPB) related to alleged misrepresentations about its savings accounts. The bank received a notice from the CFPB earlier this month, which indicated that the federal agency might proceed with enforcement or litigation.

This development traces back to a lawsuit filed by customers in 2022, who claimed they were not adequately informed of differences in interest rates between two of the bank’s accounts. Capital One had introduced its “360 Performance Savings” account, which featured a higher interest rate compared to the pre-existing “360 Savings” account. Plaintiffs in the lawsuit argued that Capital One failed to communicate these rate differences effectively, resulting in missed earning opportunities for customers.

Capital One, however, has argued it had the contractual right to adjust interest rates at its discretion and that the information about the newer account and its benefits was accessible on its website. In response to the customer lawsuit, Capital One filed a motion to dismiss the case.

The CFPB has not commented on the matter, though the agency’s probe coincides with Capital One’s pending $35.3 billion acquisition of Discover Financial Services, a move that could significantly impact the payments sector. This acquisition is currently under regulatory review, with additional scrutiny from New York Attorney General Letitia James, who is assessing whether the deal could breach state antitrust laws. In July, Capital One pledged $265 billion toward lending, philanthropy, and investments over five years if the acquisition proceeds.

The Wall Street Journal was the first to report on Capital One’s disclosure of the CFPB’s potential enforcement action.