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Meta Warns India Antitrust Ruling Could Force Rollback of Features, Harm Business

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Meta has expressed concerns that a recent antitrust ruling by India’s Competition Commission (CCI) could compel the company to “roll back or pause” some of its features, potentially damaging its business in the country. This warning comes in response to a CCI directive that prohibits Meta’s WhatsApp messaging service from sharing user data with the parent company for advertising purposes.

The Antitrust Ruling and Its Implications

The CCI’s November directive found that Meta had abused its dominant position in India and coerced WhatsApp users into accepting a 2021 privacy policy change that allegedly expanded the company’s data collection and sharing practices. As a result, Meta was slapped with a $24.5 million fine and a five-year ban on sharing data between WhatsApp and Meta in India, where Meta has over 350 million Facebook users and more than 500 million WhatsApp users.

Meta has publicly defended its policy change, expressing disagreement with the CCI’s order. However, in its appeal, Meta highlighted the potential consequences of the ruling, which it claims would significantly impact its ability to deliver personalized ads on platforms like Facebook and Instagram. According to Meta’s filing, the ban on WhatsApp-to-Meta data sharing could prevent businesses, such as an Indian fashion company, from personalizing ads based on user interactions with WhatsApp. Meta has warned that this could force the company to “roll back or pause several features and products,” threatening the commercial viability of both WhatsApp and Meta in India.

Meta’s Concerns Over the Business Impact

Meta’s filing with the Indian appeals tribunal provides an in-depth look at the potential impacts of the CCI ruling. The company argues that the data-sharing ban would disrupt its ability to offer personalized advertisements and potentially hinder the company’s long-term revenue generation in India. While Meta has not specified the exact financial consequences, the company expressed concerns about the broader implications for its business operations in one of its largest markets.

Facebook India Online Services, Meta’s registered entity in the country responsible for selling advertising inventory, reported revenue of $351 million in 2023-24, marking its highest revenue in at least five years.

Global Challenges for Meta

This issue in India adds to Meta’s ongoing regulatory challenges worldwide. In 2021, WhatsApp was accused of violating EU laws by failing to adequately explain changes to its privacy policy. Although Meta later agreed to clarify these changes, the global scrutiny continues to affect the company.

The Indian antitrust investigation began in 2021, sparked by criticism over WhatsApp’s privacy policy changes. Meta argued that the changes were designed to provide clarity on optional business messaging features and did not expand data collection or sharing practices, but the CCI disagreed. The ruling mandates that WhatsApp allow users to decide whether or not they want to share their data with Meta, a significant shift from the previous policy that offered no opt-out option.

Meta’s Appeal Against the CCI’s Ruling

In its appeal, Meta has also criticized the CCI’s approach, stating that the regulator should have consulted with the company and WhatsApp before issuing directives to change its business practices. Meta argued that the CCI lacks the technical expertise necessary to fully understand the potential consequences of its decisions, especially as they pertain to the functioning of digital platforms.

Meta’s appeal will be heard by the Indian tribunal on Thursday, though the process could take weeks or months to resolve. In the meantime, the tribunal has the option to put the CCI directive on hold, potentially providing Meta some breathing room.

 

Talen Energy to Appeal FERC’s Rejection of Amazon Data Center Deal

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Talen Energy (TLN.O) announced plans to appeal the Federal Energy Regulatory Commission’s (FERC) rejection of an amended interconnection agreement for an Amazon data center at its Susquehanna nuclear plant in Pennsylvania. Earlier this year, Talen Energy sold a data center connected to the plant to Amazon (AMZN.O), aiming to increase its capacity from 300 megawatts to 480 megawatts.

However, the deal faced opposition from major utilities American Electric Power (AEP.O) and Exelon (EXC.O). FERC sided with these companies in a November 1 ruling, blocking the interconnection agreement. Talen Energy requested a rehearing in December, but FERC’s failure to issue a decision within 30 days has made the ruling eligible for appeal to a U.S. Circuit Court of Appeals.

The company stated it will pursue an appeal to challenge the rejection. Despite the regulatory setback, Talen’s shares have surged over 200% this year, and were up 0.6% in afternoon trading.

 

Google Seeks to Delay US Judge’s App Store Ruling Amid Security Concerns

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Google has requested a California federal judge to delay the implementation of a recent court order that mandates opening its Google Play store to increased competition. In a filing submitted on Friday night, Google argued that the ruling, set to take effect on November 1, would introduce “serious safety, security, and privacy risks” to the Android ecosystem. The company, a subsidiary of Alphabet, also emphasized that the order could harm its business operations, prompting it to ask for a pause while it appeals the decision.

The ruling, handed down by U.S. District Judge James Donato on October 7, stems from a lawsuit filed by Epic Games, the developer of Fortnite. Epic successfully argued that Google was monopolizing the Android app marketplace, controlling how users download apps and make in-app payments. The court agreed, declaring that Google’s practices unfairly restricted competition and violated antitrust laws.

The injunction specifically requires Google to:

  1. Allow Android users to download apps from competing third-party platforms or stores.
  2. Permit the use of alternative in-app payment methods.
  3. Prohibit Google from paying device manufacturers to pre-install its Play Store.
  4. Stop revenue-sharing agreements with other app distributors.

If Judge Donato denies Google’s request to stay the injunction, the company plans to ask the 9th U.S. Circuit Court of Appeals to halt the order during its appeal process. Google already filed its notice of appeal to the 9th Circuit on Thursday. The appeals court will ultimately decide on the validity of Donato’s ruling as Google seeks to overturn the antitrust verdict.

This legal battle is one of several high-profile antitrust cases aimed at limiting the dominance of tech giants in digital marketplaces. While Epic Games celebrates this as a victory for competition and developers, Google maintains that such changes could undermine the security and privacy protections it has built into its app store and Android ecosystem.