In a significant setback for Meta, the Competition Commission of India (CCI) has imposed a hefty penalty of ₹213.14 crore on the social media giant. The fine pertains to alleged unfair business practices associated with WhatsApp’s 2021 privacy policy update.

The CCI has directed Meta-owned WhatsApp to cease sharing user data with other Meta-owned platforms for advertising purposes for the next five years. It has also barred WhatsApp from making data sharing a mandatory condition for users to access its services in India.

The penalty is part of broader measures by the competition watchdog to address what it termed anti-competitive practices. The CCI has instructed Meta to implement specific remedies within a defined timeline to mitigate these issues.

In response, a Meta spokesperson expressed disagreement with the CCI’s decision and confirmed the company’s intent to appeal. “The 2021 update did not alter the privacy of personal messages and was introduced as an optional choice for users. No accounts were deleted or restricted due to this update,” the spokesperson said.

Meta clarified that the update aimed to enhance transparency regarding data collection and use while introducing optional business features on WhatsApp. Highlighting the platform’s role during the COVID-19 pandemic, Meta underscored WhatsApp’s value in facilitating citizen services and supporting small businesses in India’s economy.

The CCI’s ruling underscores the growing scrutiny of data privacy and competition practices in the digital ecosystem. Meta’s appeal will likely set the stage for further legal and regulatory discussions on user data rights and business conduct in India.