Meta ‘disagrees’ with CCI fine over WhatsApp privacy policy, plans to appeal

“…the 2021 update did not alteration the privateness of people’s idiosyncratic messages and was offered arsenic a prime for users astatine the time. We besides ensured nary 1 would person their accounts deleted oregon suffer functionality of the WhatsApp work due to the fact that of this update,” Meta said successful a connection connected Tuesday, following the CCI’s decision.

“The update was astir introducing optional concern features connected WhatsApp, and provided further transparency astir however we cod and usage data. And since that time, WhatsApp has been incredibly invaluable to radical and businesses, enabling organisations and authorities institutions to present national services done COVID and beyond, and arsenic good arsenic supporting tiny businesses, each of which furthers the Indian economy. WhatsApp is capable to bash each of this due to the fact that it offers services supported by Meta,” it added.

Beyond the monetary good by CCI

The Commission besides issued cease-and-desist directions, asking Meta and WhatsApp to instrumentality definite behavioural remedies wrong a defined timeline. As per the CCI’s order, WhatsApp volition not beryllium allowed to stock idiosyncratic information collected connected its level with different Meta Companies for advertizing purposes, for a play of 5 years.

The CCI said it has concluded that the argumentation update connected a “take-it-or-leave-it” ground “constitutes an imposition of unfair conditions” nether the Competition Act.

Regarding information sharing betwixt Meta companies, the Commission said that sharing of WhatsApp users’ information betwixt Meta companies for purposes different than providing the messaging work “creates an introduction obstruction for the rivals of Meta” and “results successful denial of marketplace entree successful the show advertisement market”.

“Meta has engaged successful leveraging its ascendant presumption successful the OTT (over the top) messaging apps done smartphones to support its presumption successful the online show advertizing market,” successful contravention of the Competition Act, the CCI said.

The CCI besides said that WhatsApp’s privateness argumentation should see a elaborate mentation of the idiosyncratic information shared with different Meta Companies, which should specify the intent of information sharing, linking each benignant of information to its corresponding purpose.

“Sharing of idiosyncratic information collected connected WhatsApp with different Meta Companies… for purposes different than for providing WhatsApp services shall not beryllium made a information for users to entree WhatsApp Service successful India,” the CCI said.

How WhatsApp’s 2021 privateness argumentation courted controversy

In January 2021, WhatsApp had notified users that it was updating its privateness argumentation – which was mandatory for them to judge – with an expanded scope of information postulation and information sharing betwixt Meta companies. While users successful India could not opt-out of the updated policy, WhatsApp’s users successful the European Union could owed to the bloc’s beardown information privateness laws.

After the argumentation update caused furore – with respective users quitting the app en masse to articulation rivals similar Signal and Telegram – the CCI, successful 2021, initiated suo motu proceedings and ordered its investigative arm, the Office of the Director General, to analyse the policy.

WhatsApp and Facebook had challenged the probe successful the Delhi High Court successful 2021, saying that the contented related to privateness argumentation was already pending earlier the Supreme Court and High Court astatine the time. In 2022, the tribunal junked further appeals filed by the companies challenging the probe, saying that WhatsApp occupies a ascendant presumption successful the marketplace and has a beardown lock-in effect which renders its users incapable of shifting to different level contempt dissatisfaction.

The problems with WhatsApp’s privateness policy, particularly since Meta (Facebook astatine the time) bought the level successful 2014, person existed since astatine slightest 2016. Two years aft WhatsApp was acquired by Meta, WhatsApp announced that it would commencement immoderate level of information sharing with Facebook including telephone numbers and past seen activity. Users, however, had 30 days to opt-out of sharing information with Facebook for advertisement targeting purposes.

Meta’s acquisition of WhatsApp was allowed successful regions similar the European Union connected the ground of its committedness to sphere the privateness of its users. However, the European Commission believed the argumentation update could interruption users’ privateness and fined the institution €110 cardinal for providing incorrect oregon misleading accusation during the Commission’s 2014 probe nether the EU Merger Regulation of Facebook’s acquisition of WhatsApp.

The 2016 argumentation was challenged successful India arsenic well, but is presently pending astatine the Supreme Court. The 2021 argumentation update builds connected the 2016 version, however, determination was 1 cardinal difference: erstwhile they were shown the update successful January 2021, determination was nary longer an opt-out option, meaning that WhatsApp metadata sharing with Meta companies was each but mandatory.

WhatsApp messages are end-to-end-encrypted, meaning that the level tin not spot the messages being sent connected the platform. However, with each message, determination is metadata associated, which is not encrypted and could uncover delicate accusation astir a person.

Due to Europe’s General Data Protection Regulation (GDPR), WhatsApp has to let users successful the portion to opt-out of the service. However, that was not disposable to users successful India.