CCI Imposes Fine on Meta

• 29 Nov 2024

Source: HT

Recently, the Competition Commission of India (CCI) imposed a penalty of Rs 213.14 crore on Meta for abusing its dominant position through WhatsApp's 2021 privacy policy update.

• This ruling prohibits WhatsApp from sharing user data with other Meta companies for advertising purposes and mandates that user consent must be obtained for any data sharing.
  • The CCI found that WhatsApp's 2021 policy update forced users to accept expanded data collection terms without an option to opt out, constituting an unfair condition under the Competition Act.
  • The new policy may enable commercial exploitation and political micro-targeting.
  • The ruling mandates WhatsApp to provide clear explanations regarding data-sharing practices, enhancing transparency for users.
• WhatsApp's policy also conflicts with the Srikrishna Committee report, which forms the basis of the Data Protection Bill 2019, including data localisation and limiting data use to its original purpose.
• The Competition Commission of India (CCI) is a statutory body responsible for enforcing the Competition Act of 2002.

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