Fraud Management & Cybercrime,
Geo Focus: Asia,
Geo-Specific
India’s Competition Regulator Fines WhatsApp Over Mandatory Data Sharing Policies
The Competition Commission of India has imposed a fine exceeding $25 million on Meta, the parent company of WhatsApp, for compelling users to accept a broad data sharing mandate with its other platforms. This ruling directly prohibits Meta from utilizing users’ data for online advertising across its services.
This decision stems from a contentious update to WhatsApp’s terms of service in January 2021, during which Meta indicated that it would share user data with its other platforms in order to enhance advertising and product offerings. The Commission highlighted the absence of an option for users to opt out of these conditions as a fundamental issue.
The revised terms specified that the encrypted messaging service would share user data to “connect your WhatsApp experience with other Meta company products; ensure security across Meta’s offerings; and improve user advertising and product experiences.” This mandated consent mechanism has raised significant concerns regarding user agency.
The Commission’s findings aligned with a recent 841 million dollar penalty levied by the European Commission against Meta for similar issues, where it controversially integrated Facebook Marketplace with its primary social networking platform without obtaining explicit user consent. This ruling underscored Meta’s dominance in the social media space and its potential to unfairly advantage Facebook Marketplace at the expense of competitors.
Moreover, the Irish Data Protection Commission previously fined WhatsApp €225 million amid allegations that it employed a “forced consent” method, limiting users’ ability to freely choose whether to share their data.
In the ruling, the Competition Commission of India determined that Meta exploited its dominant market position in messaging applications and online advertising. It characterized the January 2021 update as a “take-it-or-leave-it” proposition, mandating users to accept expanded data collection terms without a functional opt-out.
The Commission has mandated that WhatsApp must refrain from sharing user data with other Meta services for advertising for a minimum of five years, specifying that any collection of data for alternative purposes must be accompanied by comprehensive disclosures to users about the data involved and its intended uses.
In response to the ruling, Meta defended its January update as optional, asserting it was designed to enhance user experience without compromising privacy. Nonetheless, Meta has announced plans to contest the ruling, maintaining that the update simply clarified how it utilizes and communicates user data.
The Internet Freedom Foundation lauded the ruling as a “landmark precedent” for data privacy and fair competition. The organization emphasized that this decision reflects a critical step in curbing the abuses of market power by major technology firms, protecting users’ fundamental rights.
