India’s Competition Commission has handed down a significant ruling, fining Meta over $25 million for WhatsApp’s controversial data-sharing policy introduced in 2021. The update, which required WhatsApp users to accept terms that involved sharing data with other Meta platforms for improved advertising and product experiences, was deemed unfair by the commission. The watchdog found that the update forced users into a “take-it-or-leave-it” decision, with no option to opt out of the data sharing, violating principles of fair competition under Indian law.
The ruling comes after extensive investigations into Meta’s handling of user data and its dominance in the market. The Competition Commission emphasized that WhatsApp users should have been given clear choices regarding the use of their personal data. The regulator’s decision reflects growing global concerns about data privacy and the need for technology giants to adopt more transparent and user-consent-driven practices.
As part of the penalty, WhatsApp has been prohibited from sharing user data with other Meta platforms for advertising purposes for the next five years. Furthermore, Meta will need to provide users with clear explanations of why data is being shared and ensure that users can easily manage their data sharing preferences. This move is part of India’s broader efforts to regulate Big Tech and protect consumer rights in the digital age.
Meta, in response to the ruling, stated that the 2021 update was optional and did not affect user privacy, claiming that the changes were intended to enhance business features on WhatsApp. The company also plans to appeal the ruling. However, this decision has been hailed by digital privacy groups like the Internet Freedom Foundation as a major victory in defending users’ rights and ensuring fair competition in the tech industry. The ruling marks a pivotal moment in India’s regulatory efforts to curb the unchecked power of global tech giants.
Reference:
