Meta challenges India's antitrust ruling, warns of feature rollbacks

CCI found Meta guilty of abusing its market dominance by compelling WhatsApp users to accept a privacy policy update in 2021

author-image
BestMediaInfo Bureau
New Update
WhatsApp-policy-update
Listen to this article
0.75x 1x 1.5x
00:00 / 00:00

New Delhi: Meta has challenged a Competition Commission of India (CCI) ruling that prohibits WhatsApp from sharing user data with its parent company for advertising purposes, warning that it may be forced to curtail features and suffer substantial financial losses.

According to news reports, the US tech giant, which operates WhatsApp among other services, has indicated that it might have to "roll back or pause" several features in India due to a ruling that bans WhatsApp from sharing user data with Meta for advertising purposes.

As per the news reports, Meta is contesting the CCI's November directive. This directive was issued after the watchdog found Meta guilty of abusing its market dominance by compelling WhatsApp users to accept a privacy policy update in 2021. 

The CCI's November directive stems from a 2021 investigation that found Meta guilty of abusing its dominant market position by requiring WhatsApp users to accept a controversial privacy policy update. The CCI concluded that this update, which expanded data collection and sharing practices, gave Meta an unfair advantage over competitors. Consequently, Meta was fined $24.5 million and handed a five-year ban on such data sharing in India.

Meta, which boasts over 350 million Facebook users and more than 500 million WhatsApp users in India, argues that the CCI's decision is based on a misunderstanding of the policy and its implications. 

In an appeal filed with the Indian tribunal, Meta contends that complying with the directive would necessitate "rolling back or pausing several features and products," jeopardising its business model in the country. The company has yet to specify which features are at risk or provide a detailed financial impact assessment.

The Indian appeals tribunal is set to hear Meta's plea on Thursday, January 16 with the potential to put the CCI's directive on hold pending further legal proceedings.

The antitrust concerns in India add to Meta's global regulatory challenges. In 2021, WhatsApp faced accusations in the European Union of not explaining policy changes clearly, which the company later addressed. 

Meta has criticised the CCI for what it sees as a lack of technical expertise and knowledge necessary to fully understand the implications of its directives.

advertising Meta CCI WhatsApp Privacy
Advertisment