Meta to Challenge ₹213-Crore CCI Penalty Over WhatsApp Privacy Policy

Meta has announced its intention to appeal the ₹213.14-crore penalty imposed by the Competition Commission of India (CCI) concerning WhatsApp's controversial 2021 privacy policy update. The CCI accused Meta of engaging in anti-competitive practices and leveraging WhatsApp's dominant market position to impose unfair terms on users.
The regulator's primary objections revolved around transparency and user consent. It criticised WhatsApp for compelling users to accept expanded data-sharing practices with other Meta-owned applications, deeming the terms exploitative. Additionally, the CCI prohibited data sharing between WhatsApp and Meta apps for advertising purposes for the next five years and demanded corrective measures to ensure user privacy.
Meta maintains that the 2021 update was designed to introduce optional business features and enhance transparency about data usage. According to a company spokesperson, the update neither altered the privacy of personal messages nor restricted access for users who opted out.
"The 2021 update did not change the privacy of people's personal messages and was offered as a choice. No one lost access to WhatsApp because of this update," Meta clarified.

To address concerns, the CCI has ordered WhatsApp to:
Provide detailed disclosures about how user data is shared.
Enable users to opt out of data sharing, including those who previously accepted the update.
Ensure these options are prominently displayed through in-app notifications.

WhatsApp's 2021 privacy policy mandated data-sharing terms that raised global concerns over user privacy. Critics argued it pressured users to accept invasive conditions, sparking regulatory scrutiny worldwide.

The clash between Meta and the CCI underscores the ongoing tension between tech giants and regulatory bodies. While Meta defends its policy as a step toward transparency, the CCI aims to safeguard user rights in India's increasingly digital ecosystem. The outcome of the appeal will likely set a significant precedent for privacy and competition regulations.