According to the Competition Act of 2002, the CCI determined that the 2021 WhatsApp policy change was imposed unfairly because it was a "take it or leave it" decision.
Mark Zuckerberg-owned Meta (previously Facebook) was fined ₹213.14 by the Competition Commission of India (CCI) on Monday for misusing its power in connection with the adoption of WhatsApp's 2021 privacy policy.According to a press release from CCI, it has asked Meta and WhatsApp to adopt specific behavioral remedies and has given them cease-and-desist orders.
"The Commission also issued cease-and-desist directions and also directed Meta and WhatsApp to implement certain behavioural-remedies within a defined timeline," according to the press statement.
WhatsApp notified users in January 2021 of changes to its privacy policy and terms of service that will take effect on February 8, 2021. Users must agree to the updated terms in order to keep using the platform, according to the message. The amended privacy policy made data sharing with Meta mandatory, in contrast to the previous one from August 25, 2016, which gave users the option to opt out of sharing their data with Facebook.
In order to continue using WhatsApp, users had to agree to these terms, which included the enlarged scope of data gathering and sharing.
WhatsApp notified users in January 2021 of changes to its privacy policy and terms of service that will take effect on February 8, 2021. Users must agree to the updated terms in order to keep using the platform, according to the message. The amended privacy policy made data sharing with Meta mandatory, in contrast to the previous one from August 25, 2016, which gave users the option to opt out of sharing their data with Facebook.
In order to continue using WhatsApp, users had to agree to these terms, which included the enlarged scope of data gathering and sharing.
After learning of WhatsApp's policy violations, the CCI opened an investigation.
It came to the conclusion that Meta Group, through WhatsApp, held a commanding lead in online display advertising in India as well as a dominant position in the market for smartphone messaging apps.
According to the Competition Act of 2002, the CCI determined that the 2021 WhatsApp policy change was imposed unfairly because it was a "take it or leave it" decision.
The commission claims that without the ability to opt out, the policy forces all users to agree to the extended conditions of data collection and sharing inside the Meta Group.
It came to the conclusion that Meta Group, through WhatsApp, held a commanding lead in online display advertising in India as well as a dominant position in the market for smartphone messaging apps.
According to the Competition Act of 2002, the CCI determined that the 2021 WhatsApp policy change was imposed unfairly because it was a "take it or leave it" decision.
The commission claims that without the ability to opt out, the policy forces all users to agree to the extended conditions of data collection and sharing inside the Meta Group.
"The 2021 update violates users' autonomy by forcing them to cooperate, which is an abuse of Meta's dominating position given the network effects and lack of viable alternatives. The order stated, "Therefore, the Commission concludes that Meta (through WhatsApp) has violated Section 4(2)(a)(i) of the Act."
CCI determined that Meta had broken the law on data sharing for the following reasons:
(a) By exchanging WhatsApp user data between Meta businesses for objectives other than delivering the WhatsApp Service, Meta's competitors are prevented from entering the market.
(b) In order to preserve its dominance in the online display advertising industry, Meta has been using its leading position in OTT messaging apps for smartphones.
CCI determined that Meta had broken the law on data sharing for the following reasons:
(a) By exchanging WhatsApp user data between Meta businesses for objectives other than delivering the WhatsApp Service, Meta's competitors are prevented from entering the market.
(b) In order to preserve its dominance in the online display advertising industry, Meta has been using its leading position in OTT messaging apps for smartphones.
Given this, CCI ordered WhatsApp to refrain from sharing platform data with Meta or its products for a period of five (5) years.
As a corrective action, WhatsApp has been ordered to provide a thorough justification in its policy about the user data that is shared with other Meta Companies.
"This explanation should specify the purpose of data sharing, linking each type of data to its corresponding purpose," the directive stated.
Additionally, WhatsApp was told not to require data sharing in order for customers to access its services in India. Here, "data sharing" refers to information gathered for advertising purposes.
"With regard to exchanging WhatsApp user information for objectives other than delivering WhatsApp services, every user in India (including users who have accepted 2021 update) will be provided with:
As a corrective action, WhatsApp has been ordered to provide a thorough justification in its policy about the user data that is shared with other Meta Companies.
"This explanation should specify the purpose of data sharing, linking each type of data to its corresponding purpose," the directive stated.
Additionally, WhatsApp was told not to require data sharing in order for customers to access its services in India. Here, "data sharing" refers to information gathered for advertising purposes.
"With regard to exchanging WhatsApp user information for objectives other than delivering WhatsApp services, every user in India (including users who have accepted 2021 update) will be provided with:
a) the possibility to control such data sharing by a conspicuous opt-out feature via an in-app notification; and
b) the ability to examine and change their decision regarding this data sharing via a noticeable tab in the WhatsApp application's settings," the directive stated.
Shardul Amarchand Mangaldas represented Meta.
Through Vivek Pandey and Biyanka Bhatia, Saravada represented the informant, the Internet Freedom Foundation.
b) the ability to examine and change their decision regarding this data sharing via a noticeable tab in the WhatsApp application's settings," the directive stated.
Shardul Amarchand Mangaldas represented Meta.
Through Vivek Pandey and Biyanka Bhatia, Saravada represented the informant, the Internet Freedom Foundation.
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