4 days Ago
A day after the Competition Commission of India (CCI) fined Meta ₹213.14 crore for "using its strong position" to change WhatsApp's 2021 Privacy Policy, the tech giant on November 19 said it is planning to appeal as it disagrees with the decision. "We disagree with the CCI’s decision and plan to appeal.
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. We also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update," said a Meta spokesperson in a statement. On November 18, CCI told Meta and WhatsApp to refrain from sharing user data with other applications, owned by Meta, for advertising purposes for a period of five years.
They must also follow specific rules soon. Meta, through WhatsApp, dominates two key markets in India. These are the OTT messaging apps on smartphones and online display advertising.
In January 2021, WhatsApp told users about changes in its terms and privacy. Users had to accept it by February 8, 2021. Before that, in August 2016, users could choose not to share their data.
The new rules forced data sharing to keep using WhatsApp. The CCI saw the 2021 update as unfair — it was a "take-it-or-leave-it" offer and hurt user choices. Meta abused its market power and the CCI has observed it as an unfair practice.
The Commission also noticed that sharing WhatsApp data with other Meta companies was unfair as a business practice as it blocked other companies from gaining a foothold in the display ad market. This went against the rules set by the Competition Act. Besides, the competition watchdog has directed Meta to cease and desist from anti-competitive practices.
Meta and WhatsApp have also been asked to implement certain behavioural remedies within a defined timeline to address the anti-competition issues, according to a CCI order. The CCI told WhatsApp not to share user data with Meta companies for ads for five years. After this time, data-sharing rules will apply.
For non-advertising reasons, WhatsApp must explain its data sharing. Each type of data sharing must have a clear reason. WhatsApp users will get the choice to stop data sharing.
They can change these settings in the app. These new rules show that big tech companies in India are being watched closely and fair competition is important in the digital world as well..
