Meta ‘disagrees’ with CCI fine of Rs 213 crore, says 2021 WhatsApp update ‘was a choice’

Meta today said it “disagrees” with the Competition Commission of India’s decision to impose a fine of Rs 213.14 crore on the social media company.

The penalty was over a 2021 update to WhatsApp’s terms of service and privacy policy, which had to be accepted by users in order to use WhatsApp. But Meta said the update “did not change the privacy of people’s personal messages and was offered as a choice for users at the time”.

“We also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update,” The Times of India quoted a spokesperson as saying. “...We are committed to finding a path forward that allows us to continue providing the experiences that people and businesses have come to expect from us.”

Meta said it plans to file an appeal.

What did CCI say?

According to Bar and Bench, the 2021 update expanded the scope of data collection and made it mandatory to share data with Meta, which owns both WhatsApp and Facebook. Previously, WhatsApp users could opt out of sharing their data with Facebook. 

In its order, the competition watchdog said that given the “lack of effective alternatives”, the 2021 update “forces users to comply, undermining their authority, and constitutes an abuse of Meta’s dominant position”. It called this a “take-it-or-leave-it” position which contravened section 4(2)(a)(i) of the Competition Act. 

Directing Meta to “cease and desist” from anti-competitive activities,  CCI also said Meta and WhatsApp must “implement certain behavioural remedies within a defined timeline”. 

For instance, it said WhatsApp cannot share data it collects on its platform with Meta companies and products for five years. WhatsApp was also directed to include an explanation in its policy on “the purpose of data sharing, linking each type of data to its corresponding purpose”.

Newslaundry had reported on the public outcry following WhatsApp’s 2021 update, and how it – temporarily – led to a great migration away from the platform. Read all about it here.

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