NewDelhi: The Competition Commission of India (CCI) has fined Meta. The company, behind WhatsApp. A sum of ₹213.14 crore, for business practices linked to the platforms privacy policy update in 2021. The CCI has instructed Meta to stop these practices.
The regulatory authority accused Meta of taking advantage of its market dominance by introducing a privacy update requiring WhatsApp users to agree to terms related to data collection and sharing, with Meta entities without the option to opt out.This approach was considered unfair in business dealings.
In addition, to that directive from the CCI to WhatsApp regarding the restriction on sharing user data gathered on its platform for advertising purposes with Meta entities for a span of five years is a setback for Meta, in light of WhatsApps extensive user community exceeding 500 million active users monthly in India.
The CCI began looking into WhatsApps updated privacy terms in March 2021 due, to worries about increased data gathering abilities and mandatory data exchange with Metas companies. Beforehand users had the option to decide if they wanted to share their information or not. Since January 2021 users are now mandated to agree with these terms as, per the guidelines enforced in February 2021.
The new policy received criticism which prompted Meta to cancel its implementation plans.The messaging app WhatsApp later explained that the update wouldn’t compromise users’ privacy, in chats and emphasized that the alterations pertained to business tools and services offered.
Following an inquiry that lasted for, than three years the Competition Commission of India (CCI) determined that WhatsApps approach of presenting users with a “take it or leave it” choice was deemed unfair as it compelled individuals to accept the platforms comprehensive data collection policies. The commission highlighted that this enforcement eroded user independence and represented an exploitation of Metas market presence contravening Section 4 (2)( A)( i ) of the Competition Act.
The committee noted that Meta utilized WhatsApps presence, in the over the top (OTT) messaging app sector to protect its stake, in the online display advertising industry impeding players from entering and hampering existing rivals capacity to challenge Metas dominance.
CCIs efforts highlight their dedication to upholding competition by preventing large tech corporations from abusing their market power boundaries.
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