A PYMNTS Company

WhatsApp Faces Potential Antitrust Penalties in India Over Privacy Policy Update

By  |  October 14, 2024

WhatsApp, the popular messaging platform, is reportedly facing potential sanctions from India’s competition authority in connection with its controversial 2021 privacy policy update. According to a report from Livemint, the Competition Commission of India (CCI) is expected to take action against WhatsApp for allegedly violating the country’s antitrust laws. The platform, owned by Meta (formerly Facebook), may soon face penalties due to its handling of user data, which has sparked widespread concern among regulators and users alike.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Background on the Privacy Policy Update

    In 2021, WhatsApp introduced a privacy policy update that allowed it to share certain user data with Meta. This update was met with criticism across the globe, including in India, where users and regulators expressed concerns over the implications for privacy and data security. According to MSN, the CCI’s impending decision is a direct response to this policy, which many viewed as unfairly intrusive. Critics argued that the new terms would give Meta access to sensitive information, sparking debates about user consent and the power dynamics between tech giants and consumers.

    Allegations of Anti-Competitive Behavior

    According to the report, the CCI has found that WhatsApp’s policy update, specifically the practice of sharing users’ business transaction data with Meta, gives the tech conglomerate an unfair competitive advantage. Citing unnamed sources, Livemint suggests that WhatsApp and Meta may be in breach of India’s competition laws, which prevent dominant companies from abusing their market position.

    Related: EU Fines IFF €15.9M for Deleting WhatsApp Messages in Antitrust Probe

    The Commission’s director general of investigation has submitted a report that alleges WhatsApp’s data-sharing practices violate provisions that prohibit the abuse of dominance, according to MSN. The report indicates that the CCI has already prepared a draft order penalizing both WhatsApp and Meta, which will soon be finalized and sent to the companies.

    WhatsApp’s Response

    In response to the ongoing legal proceedings, a spokesperson for WhatsApp emphasized that the case remains sub judice, meaning it is still under judicial review. “CCI proceedings are sub judice and we can’t comment on it,” the spokesperson said. According to Livemint, the spokesperson also defended the company’s stance, highlighting that users were given the option to accept the privacy update. Those who chose not to accept it were still able to use the platform without having their accounts deleted or experiencing a loss of functionality.

    Implications for WhatsApp and Meta

    If the CCI issues sanctions against WhatsApp and Meta, it could mark a significant moment in India’s regulatory efforts to curtail the dominance of major tech companies. According to MSN, the case could set a precedent for how privacy and competition laws intersect, particularly in an era where data has become a critical asset for tech giants.

    Source: MSN