The Competition Commission of India (CCI) has imposed a fine of ₹213.14 crore (approximately $25.3 million) on Meta, citing abuse of its dominant market position through WhatsApp’s controversial 2021 privacy policy update.
The watchdog found the update violated provisions of the Competition Act by forcing users to share data with Meta’s family of companies, including Facebook and Instagram, without providing an opt-out option.
In its ruling, the CCI directed WhatsApp to halt the sharing of user data with Meta entities for advertising purposes for five years and avoid making data-sharing with Meta companies a mandatory condition for accessing its services in India.
Additionally, WhatsApp has been asked to:
- clearly specify the types of data shared with Meta companies and the purposes for sharing.
- allow users to opt out of non-service-related data sharing and enable them to modify their choices within the app.
- extend this choice to all users, including those who accepted the 2021 policy update.
The CCI's investigation found WhatsApp to dominate India’s OTT (over-the-top) messaging market, while Meta leads the online display advertising sector.
The Commission stated that the 2021 privacy policy update imposed "unfair conditions" by requiring users to accept expanded data-sharing terms without any alternative, exploiting WhatsApp's dominant market position and the lack of viable alternatives for users.
The CCI further concluded that such data-sharing practices created entry barriers for competitors in the advertising market, denying them access and reinforcing Meta’s dominance.
The 2021 privacy policy update had previously drawn global scrutiny, with regulators raising concerns over antitrust and privacy issues.
In August 2024, a Brazilian court prohibited WhatsApp from sharing user data with Facebook and Instagram.
In response to the CCI's ruling, a Meta spokesperson announced plans to appeal the decision, stating, “We disagree with the CCI’s decision and plan to appeal. The 2021 update did not change the privacy of people’s personal messages and was offered as a choice for users. No accounts were deleted or restricted due to this update.”
The CCI initiated its investigation into WhatsApp’s privacy policy in March 2021, shortly after its rollout in January of that year.
Meta and WhatsApp had sought to halt the probe, arguing that privacy-related challenges were already being addressed in the Delhi High Court and the Supreme Court. However, both a single-judge bench in 2021 and a division bench in 2022 dismissed these appeals, allowing the investigation to proceed.
This penalty underscores the growing regulatory scrutiny over digital platforms’ use of consumer data and their market practices.
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