Meta to Challenge ₹213 Crore Fine Over WhatsApp Privacy Policy Update

Meta, the parent company of WhatsApp, has announced its intention to challenge the ₹213.14 crore fine imposed by the Competition Commission of India (CCI) regarding WhatsApp's 2021 privacy policy update. In a statement, a Meta spokesperson explained that the update did not alter the privacy of personal messages and was presented as an optional choice to users. The company also clarified that no accounts were deleted or restricted for not accepting the terms.

The CCI, however, concluded that WhatsApp had exploited its dominant position in the messaging app market, overshadowing competitors like Telegram and Signal. The regulatory body found the changes to be an abuse of market power and imposed a fine along with additional measures. For the next five years, WhatsApp is prohibited from sharing user data with other Meta companies and must clearly disclose its data-sharing practices.

Meta has contested the CCI's findings, arguing that the investigation went beyond its jurisdiction by delving into privacy matters, which the company claims fall under separate legal frameworks. Nonetheless, the CCI maintained that competition laws impose unique obligations on dominant entities to prevent abuse of their market position.

The 2021 WhatsApp privacy policy update focused on changes to how the platform collects, shares, and processes user data, particularly in its interactions with other Meta (formerly Facebook) companies. Key elements of the update included:

1. Data Sharing with Meta:The update clarified that WhatsApp would share certain data, such as user account information, transaction data, and device information, with Meta companies. This data sharing aimed to improve integrations across Meta’s platforms and support business services.

2. Business Interactions:WhatsApp introduced features to facilitate interactions between users and businesses. Businesses using WhatsApp for customer service or sales could store and manage chats on Meta’s servers. This raised concerns about how business-related conversations might be used for targeted advertising.

3. Optional Updates:While the update didn’t affect the privacy of personal messages, it was mandatory for users to accept the terms to continue using the app. This led to significant backlash, with users and privacy advocates accusing WhatsApp of exploiting its dominance in the messaging space.

4. No Account Deletion:Initially, WhatsApp warned that users who didn’t accept the update would eventually lose functionality. After widespread criticism, the company clarified that accounts would not be deleted for declining the new terms but might face limited features in the future.

According to the CCI, while privacy laws apply universally, the additional scrutiny under competition laws is necessary in cases like this."Meta to Challenge ₹213 Crore Fine Over WhatsApp Privacy Policy Update"