Meta to challenge Competition Commission's order imposing Rs 213-crore penalty
Meta, the parent company of messaging app WhatsApp, is gearing up to challenge the Competition Commission of India's decision to impose a hefty Rs 213-crore penalty. The penalty was levied in response to Meta's 2021 privacy policy update and alleged anti-competition practices. A spokesperson for Meta has expressed strong disagreement with the regulator's ruling and has indicated that the company will be filing an appeal against it.
Privacy Policy Update and Controversy
Meta has emphasized that the 2021 privacy policy update did not compromise the privacy of users' personal messages. The update was presented as an option for users at the time of its implementation. The company clarified that no accounts were at risk of deletion or loss of functionality due to the update, as reported by PTI citing Meta's spokesperson.
Challenge Against Data Sharing Restrictions
In addition to contesting the penalty, Meta is also challenging the restriction placed by the Competition Commission that prohibits WhatsApp from sharing data with other Meta platforms for advertising purposes. The company, headed by tech magnate Mark Zuckerberg, underscored the significant role that WhatsApp plays in facilitating services for individuals and businesses in India, particularly during the Covid pandemic.
CCI's Ruling and Imposed Restrictions
The Competition Commission of India, in its ruling, accused Meta of leveraging its dominant position in the industry and coercing users into accepting the 2021 privacy policy update. The Commission noted that while users were previously allowed to opt out of sharing data with Facebook under WhatsApp's 2016 policy, the 2021 update made data sharing with Meta mandatory for all users.
As a consequence, users were compelled to agree to the revised terms, including data sharing with Meta, in order to continue using the platform. CCI labeled this move as an "imposition of unfair condition under the Competition Act" and found Meta in violation of specific provisions of the Act.
Appeal and Future Plans
Despite the regulatory directive, Meta remains steadfast in its stance, asserting that WhatsApp's ability to provide a range of services is intrinsically linked to its data sharing with sister platforms under the Meta umbrella. The company expressed its commitment to finding a resolution that would enable the continuation of seamless services for users and businesses.
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