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India competition regulator fines Facebook parent Meta $25m over 2021 WhatsApp privacy policy that forced users to allow data sharing
India’s competition regulator has fined Facebook parent Meta Platforms 2.13 billion rupees ($25.3m, £20m) over antitrust violations related to a 2021 WhatsApp privacy policy and ordered the company not to share user data with its other apps for a period of five years.
The Competition Commission of India (CCI) in March 2021 opened an investigation into the January 2021 privacy policy change, which required users to allow their data to be shared with other Meta apps, spurring a criticism worldwide.
Previously users had had the option of deciding whether or not they would allow sharing with other Meta companies.
“With the latest policy update in 2021, WhatsApp made data sharing with Meta mandatory for all users, removing the earlier option to opt out. As a result, users had to accept the new terms, which include data sharing with Meta, to continue using the platform,” the CCI said.
‘Lack of alternatives’
It said the “take-it-or-leave-it” approach constituted an unfair condition under India’s Competition Act.
“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. Accordingly, the Commission finds that Meta (through WhatsApp) has contravened Section 4(2)(a)(i) of the Act,” said the regulator.
Meta was found to be dominant in smartphone messaging apps in India and to hold a leading position in online display advertising in the country, the regulator said.
The data sharing provisions were also found to constitute a barrier to entry for Meta competitors, it stated.
“Sharing of user data collected on WhatsApp with other Meta companies… for purposes other than for providing WhatsApp service shall not be made a condition for users to access WhatsApp Service in India,” the CCI stated.
Competition concerns
The EU, through the Irish data protection regulator, fined Meta 225m euros (£188m) in September 2021 over earlier data-sharing policy changes that took place after Meta bought WhatsApp in 2014.
In February a panel established by India’s corporate affairs ministry proposed a “Digital Competition Bill” that would be similar to the EU’s Digital Markets Act, placing more pressure on Meta and other large tech companies.
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