Meta gets a big blow in India, fined Rs 213 crore and banned for 5 years!

Meta in India: The Competition Commission of India (CCI) on Monday imposed a fine of Rs 213.14 crore on social media giant Meta (formerly Facebook). The action was taken for unfair business practices and anti-competitive behavior under WhatsApp's privacy policy introduced in 2021. The commission has directed Meta to stop abusing dominant position and refrain from such behavior.

WhatsApp Privacy Policy and the Beginning of the Controversy

In March 2021, the CCI began an investigation into WhatsApp's new privacy policy, which brought a mandatory provision for sharing user data with Meta and its affiliates. This policy attempted to obtain consent from users without giving them a choice.

Earlier till 2016, users had the freedom to decide whether they wanted to share their data with the company or not. But the new policy implemented in January 2021 ended this freedom. It was made mandatory for users to accept these terms to continue using WhatsApp.

CCI's investigation and findings

After nearly three-and-a-half years of in-depth investigation, the CCI found that WhatsApp's "take-it-or-leave-it" policy affects the autonomy and rights of users. The commission also said that Meta abused WhatsApp's dominant position by forcing users to agree to unnecessary data sharing terms.

The CCI called Meta's move a violation of Section 4(2)(a)(i) of the Indian Competition Act, which deals with abuse of dominance.

Ban on user data sharing

The CCI ordered WhatsApp not to share user data with Meta or its subsidiaries for advertising purposes for a period of five years. The move was taken to protect consumer privacy and promote digital competition.

Meta's position and impact

The decision is a major setback for Meta, as India is WhatsApp's largest market, with over 500 million monthly active users. This decision will not only impact Meta's business strategies but also underline the importance of data protection and competition in digital platforms.

A step towards competition and data protection

This move by CCI reflects its commitment towards maintaining competition in the Indian digital space and protecting the rights of users. This decision has sent a strong message not only to Meta but also to other tech companies to not abuse their dominant position and respect the privacy and freedom of users.

In conclusion, this decision by CCI can prove to be a milestone for the Indian digital economy, where protecting user rights and competition is of paramount importance.