In an order of far reaching ramifications, the Competition Commission of India imposed a fine of Rs 214 crore [US$ 25 million] on Meta for forcing Whatsapp users to accept its policy of using their personal data on other platforms, or else quit the popular messaging app.
Angered at autocratic manner in in which the “Take-It-Or-Leave-It” policy was forced on the Whatsapp users, the CCI also issued a “cease and desist” order and a number of directions to be complied with in a limited time frame.
The order comes as a bitter pill for the BigTech operators who are confronted with the increasingly stringent regulatory system that does not allow them to take liberties with user information. The order is the first of its kind but will not be the last. It will go a long way deciding how the BigTech treats its users in world’s largest and most connected market.
The approach of Indian Government and all-powerful tribunals suspicious of BigTech abusing user information has been rather harsh and punitive regardless of political party in power. During Manmohan Singh-run Congress government also, the Blackberry at one point was warned of shutting its shop in India if it refused to have its server physically based in India. After a bitter fight, Blackberry fell in line in July 2013, allowing Indian authorities access to its “fully encrypted” servers.
The order on Meta is yet to be uploaded on CCI website, but here is the gist:
The CCI (Commission) imposed a penalty of Rs. 213.14 crore on Meta for “abusing its dominant position” This relates to how WhatsApp’s 2021 Privacy Policy was implemented and how user data was collected and shared with other Meta companies. The Commission also issued cease-and-desist directions and also directed Meta and WhatsApp to implement certain behavioural remedies within a defined timeline.
In this matter, the Commission delineated two relevant markets i.e., the market for OTT messaging apps through smartphones in India; and the market for online display advertising in India. Further, Meta Group operating through WhatsApp was found to be dominant in the market for OTT messaging apps through smartphones in India. Furthermore, it was also found that Meta holds a leading position compared to its competitors in the online display advertising in India.
Starting from January 2021, WhatsApp notified users about updates to its terms of service and privacy policies. The in-app notification stated that, effective 08.02.2021, users were required to accept these terms, including expanded scope of data collection as well as mandatory data sharing with Meta companies, to continue using WhatsApp. Under the previous privacy policy dated 25.08.2016, WhatsApp users were given the option to decide whether they wanted to share their data with
