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Meta, the parent company of WhatsApp, is planning to contest a Rs 213.14-crore fine imposed by the Competition Commission of India (CCI) for alleged anti-competitive practices linked to WhatsApp’s 2021 privacy policy update, according to news agency PTI.
The penalty comes alongside directives for the company to stop anti-competitive behaviour and implement specific remedies within a stipulated timeframe.
The competition watchdog found that WhatsApp’s 2021 privacy policy involved anti-competitive practices, including sharing user data with other Meta-owned platforms for advertising.
WhatsApp has been barred from sharing such data for five years and Meta has been directed to take steps to address these concerns.
According to the order, WhatsApp’s policy must now include detailed explanations of what user data is shared with other Meta entities, linking each data type to its intended purpose.
Furthermore, the CCI directed that WhatsApp users in India should not be compelled to share their data with Meta for non-service-related purposes as a condition for using the app.
A Meta spokesperson reportedly said that the company disagrees with the CCI’s findings and intends to appeal.
The spokesperson defended the 2021 policy update, claiming it was optional and did not alter the privacy of personal messages. They clarified that no user faced account deletion or service loss for not accepting the policy.
According to Meta, the update introduced optional business features and aimed to increase transparency around data collection and usage.
The company emphasised that WhatsApp remains an essential platform in India, enabling businesses, government services, and small enterprises to operate efficiently.
“WhatsApp supports small businesses and government institutions, especially during COVID and beyond, contributing to the Indian economy. It provides these services by leveraging Meta’s infrastructure,” the spokesperson added.
The CCI has directed WhatsApp to offer an opt-out option for users in India, including those who agreed to the 2021 policy update.
This opt-out feature, which must be prominently displayed through in-app notifications, will give users control over their data being shared with other Meta entities for non-WhatsApp-related purposes.
The CCI has also prohibited WhatsApp from utilising shared user data for advertising purposes and stipulated that data sharing for other purposes must be transparently communicated.