India’s Watchdog Bans WhatsApp Data Sharing for Five Years, Fines Meta $25.4M

India’s Competition Commission (CCI) imposed a five-year restriction on WhatsApp, prohibiting the messaging app from sharing user data with other Meta-owned platforms for advertising. The U.S. tech giant Meta, which owns WhatsApp, was also fined $25.4 million for antitrust violations tied to WhatsApp’s 2021 privacy policy, according to Reuters.

The CCI’s decision follows an investigation launched in March 2021 after WhatsApp introduced a new privacy policy permitting data sharing with Facebook and its associated services. This policy sparked global criticism over concerns that it could undermine user privacy. According to the CCI, WhatsApp cannot require data sharing with other Meta companies as a condition for users to access the app in India. “Sharing of user data collected on WhatsApp with other Meta companies… for purposes other than for providing WhatsApp service shall not be made a condition for users to access WhatsApp Service in India,” stated the CCI.

Meta has yet to respond to the recent ruling, Reuters noted, and it remains unclear how the company plans to address the restrictions in one of WhatsApp’s largest markets.

Related: EU Issues Major Antitrust Fine Against Meta for Facebook Marketplace

This decision arrives as India explores an increasingly assertive stance on digital regulation. Alongside the WhatsApp ruling, Indian regulators are considering new antitrust legislation similar to the EU’s approach to overseeing Big Tech. A government-appointed panel report, published in February, proposed the “Digital Competition Bill,” designed to bolster existing laws and establish clearer boundaries for digital giants like Meta, Apple, and Google.

While the proposed legislation seeks to balance innovation with regulatory oversight, the U.S.-India Business Council, a major lobby representing American firms, has raised concerns over the potential impacts on U.S.-based companies operating in India. The council argues that the measures could create additional operational burdens on businesses.

India’s move to rein in Meta reflects a larger global trend, where major technology firms are facing increasing scrutiny from regulators concerned about privacy, data security, and fair competition.

Source: Reuters