New Delhi: Meta plans to challenge a Rs 213-crore fine imposed by India's Competition Commission over WhatsApp's 2021 privacy policy update. The company said it disagrees with the ruling and intends to file an appeal.

On Monday, the Competition Commission of India (CCI) instructed WhatsApp to stop sharing user data with other Meta-owned apps for advertising purposes for the next five years. This directive comes after the CCI found Meta's practices unfair regarding changes made to WhatsApp's privacy policy in 2021.

In addition to the fine, the CCI ordered Meta to cease any anti-competitive behavior. The ruling also requires Meta and WhatsApp to implement specific behavioral adjustments within a set timeframe to resolve competition-related concerns.

A Meta spokesperson said the company does not agree with the CCI's decision and will seek to appeal. The spokesperson clarified that the 2021 privacy update did not impact the privacy of users' personal messages and was presented as an option. "We also made sure that no accounts would be deleted or lose any functionality on WhatsApp due to this update," the spokesperson said.

The Commission has determined that WhatsApp's 2021 policy update, presented on a 'take-it-or-leave-it' basis, imposes unfair conditions on users. It forces them to accept expanded data collection and sharing within the Meta Group without an option to opt out. Due to the network effects and the absence of viable alternatives, users are compelled to comply, which diminishes their autonomy and amounts to an abuse of Meta's dominant position. As a result, the Commission has concluded that Meta (through WhatsApp) has violated Section 4(2)(a)(i) of the Act.

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