CCI imposes Rs 213.14 crore penalty on meta for anti-competitive practices

The Competition Commission of India (CCI) has imposed a hefty monetary punishment of Rs. 213.14 crore connected Meta for abusing its ascendant position.

According to CCI, the lawsuit pertains to the implementation of WhatsApp's 2021 Privacy Policy, which progressive arguable information postulation and sharing practices with different Meta entities.

Along with the penalty, the CCI has issued cease-and-desist directions and mandated behavioural remedies to beryllium implemented wrong a stipulated timeline.

The CCI identified 2 cardinal markets successful its investigation: the marketplace for over-the-top (OTT) messaging apps done smartphones successful India and the marketplace for online show advertizing successful India.

The Commission concluded that WhatsApp, operated by Meta, holds a ascendant presumption successful the OTT messaging app marketplace successful India. Similarly, Meta was recovered to person a starring presumption successful the online show advertizing marketplace compared to its competitors.

In January 2021, WhatsApp introduced updates to its presumption of work and privateness policy, notifying users via in-app prompts.

Effective from February 8, 2021, the caller argumentation required users to judge expanded information postulation terms, including mandatory sharing of idiosyncratic information with different Meta companies.

Unlike the 2016 privateness policy, which allowed users to opt retired of information sharing with Facebook, the 2021 update removed this choice, compelling users to judge the presumption oregon suffer entree to WhatsApp.

The CCI recovered this 'take-it-or-leave-it' argumentation to beryllium an unfair information nether the Competition Act, arsenic it forced users to comply with expanded information postulation and sharing terms, undermining their autonomy.

Given WhatsApp's web effects and deficiency of effectual alternatives, the update constituted an maltreatment of Meta's ascendant position, violating Section 4(2)(a)(i) of the Act.

The Commission besides highlighted anti-competitive practices arising from the sharing of idiosyncratic information betwixt Meta entities.

Sharing WhatsApp idiosyncratic information with different Meta companies for purposes beyond providing WhatsApp services creates important introduction barriers for competitors, violating Section 4(2)(c) of the Act.

Meta leveraged its dominance successful the OTT messaging app marketplace to fortify its presumption successful the online show advertizing market, contravening Section 4(2)(e) of the Act.

To code the identified anti-competitive harm, the CCI directed Meta and WhatsApp to instrumentality respective measures.

WhatsApp is prohibited from sharing idiosyncratic information collected connected its level with different Meta companies for advertizing purposes for 5 years. After this period, definite provisions volition use to modulate specified information sharing.

WhatsApp indispensable supply a elaborate mentation of the types of idiosyncratic information shared with different Meta companies, specifying the purposes for each benignant of data.

Data sharing for purposes different than providing WhatsApp services cannot beryllium a information for utilizing WhatsApp successful India.

All users, including those who accepted the 2021 update, indispensable beryllium offered an opt-out enactment for nonservice-related information sharing via a salient in-app notification.

Users should beryllium capable to reappraisal and modify their choices done a wide tab successful the app's settings. Future argumentation updates indispensable comply with these requirements.