Meta to challenge $25.4M penalty by Indian competition watchdogMeta to challenge $25.4M penalty by Indian competition watchdog

Meta says it will appeal a $25.4 million fine imposed by Indian authorities, together with other restrictions, for abusing its dominant position.

Gagandeep Kaur, Contributing Editor

November 19, 2024

2 Min Read
Meta logo on website screen
(Source: Dzmitry Kliapitski/Alamy Stock Photo)

Technology giant Meta said today that it will appeal against the 2.1 billion Indian rupee (US$25.4 million) penalty imposed by India’s competition watchdog, the Competition Commission of India (CCI), over a controversial WhatsApp information sharing policy from 2021, according to media reports.

WhatsApp, a prominent messaging app owned by Meta, made it mandatory for users to agree to share their data with other Meta companies and advertisers in 2021. The failure to agree to this would have meant ceasing the use of the messaging app, which was a tough choice considering the app is used by over 500 million people in the country. WhatsApp later issued a clarification that the policy change did not impact the privacy of user messages.

"Given the network effects and lack of effective alternatives, the 2021 Update forces users to comply, undermining their autonomy, and constitutes an abuse of Meta’s dominant position," CCI said in a press release.  

CCI directs WhatsApp "not to share user data collected on its platform with other Meta Companies or Meta Company Products for advertising purposes, for a period of 5 (five) years from the date of receipt of this order."

In addition, WhatsApp must provide "clear, detailed explanations about how user data is shared with other Meta companies or Meta Company products." CCI has also ordered WhatsApp to offer all users, including those who earlier accepted the controversial update, an opt-out option, which must be prominently displayed through an in-app notification.

India is not the only country to impose such measures. Sharing of user data is crucial to the monetization of WhatsApp for Meta, and this is leading to conflicts in several countries. Hamburg Commissioner for Data Protection and Freedom of Information temporarily banned Meta from processing German users' WhatsApp data in 2021. India is the largest market for WhatsApp, and any policy change here will have a significant impact on the company.

India has also come up with the Digital Personal Data Protection Act to safeguard the interests of its citizens. The country has, in general, adopted an aggressive stance against technology giants. The CCI has previously issued a INR13 billion ($153 million) fine to Google for misusing its dominant position regarding its Android operating system.

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About the Author

Gagandeep Kaur

Contributing Editor

With more than a decade of experience, Gagandeep Kaur Sodhi has worked for the most prominent Indian communications industry publications including Dataquest, Business Standard, The Times of India, and Voice&Data, as well as for Light Reading. Delhi-based Kaur, who has knowledge of and covers a broad range of telecom industry developments, regularly interacts with the senior management of companies in India's telecom sector and has been directly responsible for delegate and speaker acquisition for prominent events such as Mobile Broadband Summit, 4G World India, and Next Generation Packet Transport Network.

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