By 
India’s Competition Commission (CCI) has imposed a Ksh.3 billion ($25.4 million) fine on Meta Platforms for antitrust violations linked to WhatsApp’s 2021 privacy policy. The ruling prohibits WhatsApp from sharing user data with other Meta-owned applications for advertising purposes for five years.
Details of the Ruling
The CCI began investigating WhatsApp’s updated privacy policy in March 2021 after global backlash over its provisions allowing data sharing with Facebook and its subsidiaries. The regulator criticized the policy for making data sharing a condition of using WhatsApp services, a practice it deemed anticompetitive.
In its decision, the CCI stated:
“Sharing of user data collected on WhatsApp with other Meta companies… for purposes other than providing WhatsApp service shall not be made a condition for users to access WhatsApp Service in India.”
Meta has not yet issued an official response to the ruling.
Regulatory Challenges for Tech Giants
The decision comes amid increasing scrutiny of global tech firms like Meta, Apple, and Google in India. The country is considering the adoption of a “Digital Competition Bill,” modeled after the European Union’s antitrust framework.
A February report by a corporate affairs ministry panel recommended introducing this bill to address the evolving digital competition landscape. While proponents argue the law is necessary to ensure fair competition, it has faced opposition from organizations such as the U.S.-India Business Council, which has expressed concerns about its potential impact on businesses.
Implications for the Industry
The fine and restrictions signal a shift toward stricter regulatory oversight in India’s tech ecosystem. For Meta, this ruling underscores the challenges of navigating differing regulatory environments globally. Meanwhile, India’s evolving digital competition laws may set a precedent for other countries addressing the dominance of tech giants in the digital economy.
Comments