The Competition Commission of India (CCI) has of INR2.1 billion (USD252 million) on Meta for abuse of dominant position. The CCI imposed the penalty in relation to the privacy policy of the Meta-owned WhatsApp service, issued cease-and-desist directions and ordered implementation of remedial behaviour.
In 2021, WhatsApp updated its privacy policy, which included a mandatory condition that users had to agree to their data being collected and shared with other Meta companies and products, if they wished to continue to use WhatsApp’s services.
The CCI found this “take-it-or-leave-it” policy an imposition of unfair condition, and without the option to opt-out Meta had undermined the users’ autonomy and constituted an abuse of dominant position.
Meta sharing data it collected from among its companies and products created an entry barrier for competitors, resulting in denial of market access, the CCI found.
Hence, it issued the following directions:
- WhatsApp cannot share any user data with other Meta companies or products for advertising purposes for five years.
- Meta must include a detailed explanation of its data-sharing policies with other Meta companies or products, specifying and linking each data type to a corresponding purpose.
- Remove the condition that data collected on WhatsApp shall be shared with other Meta companies and products to access WhatsApp services in India.
- To share data other than for the purpose of providing WhatsApp services, all users (including the ones who previously accepted the policy) will be provided with an option prominently placed in the app to:
- Manage the data shared by way of an opt-out; and
- Review and modify their choice about sharing such data.
Just days before the CCI issued its penalty, the European Commission (USD844 million) for breach of antitrust rules by tying the online classified ads service, Facebook Marketplace, to personal social network Facebook, and imposing unfair trading conditions on other providers of online classified ads.
