Meta, the parent company of WhatsApp, has announced its intention to appeal the Competition Commission of India’s (CCI) decision to impose a fine of Rs 213.14 crore on the company for allegedly abusing its dominant position in the market. The fine is related to the implementation of WhatsApp’s 2021 privacy policy update, which the CCI claims unfairly impacted user data privacy and allowed the company to share personal data with other Meta companies.
In a statement released on Tuesday, a Meta spokesperson expressed disagreement with the CCI’s ruling, stating that the 2021 update did not alter the privacy of users’ personal messages. The company further emphasized that the update had been presented as an optional choice for users, and there were no consequences such as account deletions or loss of service functionality for those who did not accept the update.
“We disagree with the CCI’s decision and plan to appeal. As a reminder, the 2021 update did not change the privacy of people’s personal messages and was offered as a choice for users at the time. We also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update,” the spokesperson said.
The penalty and the associated cease-and-desist directions were imposed on Meta by the CCI on Monday. The commission found that WhatsApp’s privacy policy update, which was rolled out in 2021, allowed the company to collect and share user data in ways that violated competition laws. Specifically, the CCI believes that WhatsApp’s policies gave the company an unfair advantage in the market by exploiting its dominant position to gather and share data across Meta’s other platforms, without adequate user consent or transparency.
In addition to the fine, the CCI has mandated that Meta and WhatsApp implement specific behavioral remedies within a defined timeline to address the commission’s concerns. The regulator also called for changes to how WhatsApp handles user data and transparency regarding data sharing with other Meta companies.
Meta defended the update, stating that it was primarily aimed at introducing optional business features for WhatsApp users and enhancing transparency regarding how user data is collected and used. The company further highlighted that the update helped support small businesses in India and facilitated essential services during the COVID-19 pandemic, benefiting both individuals and government institutions.
“WhatsApp is incredibly valuable to people and businesses, enabling organizations and government institutions to deliver citizen services through COVID and beyond, and supporting small businesses in furthering the Indian economy. WhatsApp is able to do all of this because it offers services supported by Meta,” the spokesperson added.
This move by the CCI is the second time in recent months that India’s competition regulator has taken a strong stance against major tech companies for alleged market dominance. Last year, Google was also penalized by the CCI for abusing its dominant position in the Android ecosystem. In that case, the commission instructed Google to modify its business practices, particularly in how it bundles its apps on Android devices.
Meta’s statement also reiterated the company’s commitment to working with regulators to find a solution that balances user privacy concerns with the services it offers. “We are committed to finding a path forward that allows us to continue providing the experiences that people and businesses have come to expect from us,” the spokesperson concluded.
The ongoing legal and regulatory scrutiny of tech giants in India reflects the country’s growing focus on ensuring fair competition and protecting user privacy in an increasingly digital economy. The outcome of Meta’s appeal could set important precedents for how tech companies operate in the Indian market moving forward.
