India’s Competition Commission (CCI) has dealt a major blow to WhatsApp, prohibiting the platform from sharing user data with Meta subsidiaries for advertising purposes for the next five years. Additionally, the regulator imposed a $25.4 million fine, citing antitrust violations linked to WhatsApp’s contentious 2021 privacy policy update.
The CCI launched its investigation in 2021 after WhatsApp’s policy revision demanded users share their data with Meta entities or risk losing access to the messaging service. The update eliminated the opt-out feature available since 2016, significantly broadening the scope of data collection and sharing.
The watchdog determined that WhatsApp’s policy constituted an abuse of Meta’s dominant position in two critical Indian markets: smartphone-based messaging apps and online display advertising. By forcing users to comply with the update, WhatsApp created barriers for competitors and restricted market access, especially in advertising.
What’s Next for WhatsApp?
The CCI has ordered sweeping changes to WhatsApp’s data practices in India:
- Transparency: WhatsApp must clearly explain what data is shared with Meta entities and why.
- Opt-Out Option: Users must be provided with prominent opt-out settings, both for new users and those who previously accepted the 2021 update.
With over 450 million active users in India, this ruling marks another regulatory hurdle for Meta in one of its largest markets.
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