The Competition Commission of India (CCI) has levied a fine of ₹213.14 crore on Meta Platforms, citing violations of competition law related to WhatsApp’s 2021 privacy policy update. The CCI found that the updated terms of service imposed unfair conditions on users and amounted to an abuse of Meta’s dominant position in the market.
CCI’s Findings
The CCI stated that Meta, operating through WhatsApp, holds a dominant position in India’s OTT messaging market and leads the online display advertising sector. The 2021 privacy policy update introduced mandatory data sharing between WhatsApp and other Meta companies, removing a previous option that allowed users to opt out.
The policy update required users to accept these terms to continue using the messaging service, a move described as a “take-it-or-leave-it” condition. According to the CCI, this practice constitutes a violation under Section 4(2)(a)(i) of the Competition Act.
In its official release, the CCI noted:
“The 2021 update forces users to comply, undermining their autonomy, and constitutes an abuse of Meta’s dominant position. This take-it-or-leave-it approach imposes unfair conditions on users.”
Impact on Competition
The CCI further emphasized that sharing user data collected on WhatsApp with other Meta companies or products creates entry barriers for rivals. It stated:
“Sharing WhatsApp users’ data between Meta companies for purposes other than providing WhatsApp services creates an entry barrier for the rivals of Meta.”
The commission added that the network effects of WhatsApp, coupled with a lack of effective alternatives, compelled users to comply with the updated terms.
Background of the Policy
In January 2021, WhatsApp notified users of an update to its privacy policy and terms of service, effective from February 8, 2021. The update mandated data sharing with Meta companies, removing the earlier option for users to choose whether to share their data with Facebook. Users were required to accept the terms to continue using the platform.
The previous policy allowed users discretion over data sharing, but the 2021 update made it a precondition for accessing WhatsApp.
