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The Competition Commission of India (CCI) on Monday imposed a penalty of Rs 213.14 crore on Meta for unfair business practices regarding the WhatsApp privacy policy update done in 2021. The competition watchdog has directed Meta to cease and desist from anti-competitive practices.
Disagreeing with the watchdog, Meta said on Tuesday that it plans to appeal the CCI's order. "As a reminder, the 2021 update did not change the privacy of people's personal messages and was offered as a choice for users at the time," a Meta spokesperson said. What is the penalty for? The antitrust watchdog on Monday said Meta has abused its dominant position in the market, explaining that this fine relates to how WhatsApp's 2021 privacy policy was implemented and how user data was collected and shared with other Meta companies.
The commission specifically highlighted two markets where WhatsApp was abusing its dominant position -- OTT messaging apps through smartphones in India, and online display advertising in India. Web Development Master RESTful APIs with Python and Django REST Framework: Web API Development By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Intermediate Java Mastery: Method, Collections, and Beyond By - Metla Sudha Sekhar, IT Specialist and Developer View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Web Development Intermediate C++ Skills: Master Pointers, Structures and File Stream By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Django & PostgreSQL Mastery: Build Professional Web Applications By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance Tally Prime & GST Accounting: Complete Guide By - CA Raj K Agrawal, Chartered Accountant View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance Financial Literacy i.e Lets Crack the Billionaire Code By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator View Program Office Productivity Excel Essentials to Expert: Your Complete Guide By - Study At Home, Quality Education Anytime, Anywhere View Program Finance A2Z Of Finance: Finance Beginner Course By - elearnmarkets, Financial Education by StockEdge View Program Artificial Intelligence(AI) Tabnine AI Masterclass: Optimize Your Coding Efficiency By - Metla Sudha Sekhar, IT Specialist and Developer View Program Office Productivity Advanced Excel Course - Financial Calculations & Excel Made Easy By - Anirudh Saraf, Founder- Saraf A & Associates, Chartered Accountant View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Strategy ESG and Business Sustainability Strategy By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader View Program Web Development Java 21 Essentials for Beginners: Build Strong Programming Foundations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Leadership Building Your Winning Startup Team: Key Strategies for Success By - Dr.
Anu Khanchandani, Startup Coach with more than 25 years of experience View Program Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Future of Marketing & Branding Masterclass By - Dr. David Aaker, Professor Emeritus at the Haas School of Business, UC Berkeley, Author | Speaker | Thought Leader | Branding Consultant View Program Office Productivity Mastering Google Sheets: Unleash the Power of Excel and Advance Analysis By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) ChatGPT Mastery from Zero to Hero: The Complete AI Course By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Mastering Full Stack Development: From Frontend to Backend Excellence By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development C++ Fundamentals for Absolute Beginners By - Metla Sudha Sekhar, IT Specialist and Developer View Program Leadership Business Storytelling Masterclass By - Ameen Haque, Founder of Storywallahs View Program According to the CCI order, “The 2021 policy update by WhatsApp on a ‘take it-or-leave-it’ basis constitutes an imposition of unfair conditions under the Act, as it compels all users to accept expanded data collection terms and sharing of data within Meta Group without any opt-out.” Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories What is the case? The CCI had begun a probe into Meta in March 2021 due to concerns regarding WhatsApp's privacy policy update.
This update was mandatory for users to accept and it expanded the scope of data collection and sharing between WhatsApp's sister firms, including Facebook and Instagram. The investigation aimed to find out if the policy update was an abuse of WhatsApp's dominant position in the Indian market. The CCI's concerns were primarily centered around the following issues: CCI's major concerns with the update were: - Users had to accept the policy in order to continue using WhatsApp, limiting their choice.
- The policy allowed WhatsApp to share user data with other Meta companies for advertising and other purposes - The policy was not sufficiently clear about the extent of data collection and sharing The b acklash The announcement of this update had sparked a global backlash. Scores of WhatsApp users in India had migrated to competitor platforms like Signal and Telegram, as many thought their data will be shared with Facebook, or their chats would no longer be encrypted. As a result, WhatsApp had delayed the update from early 2021 to May .
When the update was reintroduced, WhatsApp added clarifications, including an in-app banner to better explain the update. Company executives assured users that its changes were minor, that it cannot read users' messages, and that its services were secure. CCI's suggestions The CCI order directs the social media giant to implement behavioural remedies within a defined timeline to address the anti-competition issues.
WhatsApp has been asked to refrain from sharing user data with other applications, owned by Meta, for advertising purposes for a period of five years. On sharing of WhatsApp user data for purposes other than advertising, the regulator said WhatsApp's policy should include a detailed explanation of the user data shared with other Meta companies or Meta company products. CCI said all users in India (including users who have accepted the 2021 update) must be given the choice to manage data sharing for purposes other than for providing WhatsApp services, by way of an opt-out option prominently through an in-app notification.
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