India Fines WhatsApp $25.4M, Restricts Data Sharing Practices
- The Competition Commission of India fined Meta $25.4 million and restricted WhatsApp from sharing user data with other Meta-owned entities for five years.
- India's government is exploring a "Digital Competition Bill" to strengthen antitrust regulations on tech giants.
India’s Competition Commission of India (CCI) has taken a decisive stance against WhatsApp's data-sharing policies. On Monday, the watchdog imposed a $25.4 million fine on Meta (META.O) for antitrust violations tied to WhatsApp’s 2021 privacy policy. It also barred the messaging platform from sharing user data with Meta-owned applications for advertising purposes in India for the next five years.
The privacy policy introduced by WhatsApp in 2021 sparked widespread criticism by permitting data sharing with Facebook and its subsidiaries, prompting the CCI to launch an investigation in March 2021.
In its directive, the CCI stated,
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“Sharing of user data collected on WhatsApp with other Meta companies... for purposes other than for providing WhatsApp service shall not be made a condition for users to access WhatsApp Service in India.”
While Meta has not yet responded to the ruling, the decision aligns with growing scrutiny faced by global tech companies in India. Alongside Apple (AAPL.O) and Google (GOOGL.O), Meta is under pressure with India's exploration of new antitrust measures similar to those seen in the EU.
A February report from a corporate affairs ministry panel proposed introducing a "Digital Competition Bill" to complement existing legislation. This potential regulatory overhaul is viewed by U.S. tech lobbyists, including the U.S.-India Business Council, as a move that could significantly impact business operations in India.
Edited by Harshajit Sarmah
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