The global big tech giants often known by their acronym FANG (Facebook, Amazon, Netflix, Google) have repeatedly found themselves in hot waters for violating laws of the land on data privacy, anti-market practices, and killing competition. Now, in a major decision for the protection of user data, the Competition Commission of India (CCI) has imposed a hefty fine of Rs 213.14 crore on Meta, the parent company of Facebook, Whatsapp, and Instagram.
The competition watchdog has penalised the digital behemoth for engaging in “anti-competitive practices”. According to the CCI, Meta has been fined for abusing its “dominant position” following changes to the messaging platform’s privacy policy in 2021. This is reportedly the first action of its kind against a social media platform.
Apart from the fine, the competition watchdog has prohibited WhatsApp from supplying user data to other Meta-owned apps for advertisement purposes for the next five years.
Apart from the fine, CCI has also ordered Meta to not make it a condition for users to share their data with other Meta-owned products in order to access WhatsApp services in India.
The penalty arises from WhatsApp’s 2021 policy update, which the CCI has found to violate fair business practices. The Commission also took an issue with the impact of the update on competition and ordered Meta to take corrective measures within a given timeline.
It has also asked WhatsApp to change its policies and ensure that users get a choice to opt out of the data-sharing arrangement. It has also been asked to give users an option — through a prominent tab — to review and modify their choice.
In a statement, the CCI said, “The commission has concluded the 2021 policy update by WhatsApp on a ‘take-it-or-leave-it’ basis constitutes an imposition of unfair condition under the (Competition) Act, as it compels all users to accept expanded data collection terms & sharing of data within Meta Group without any opt-out.”
Meanwhile, in its defence, Meta has said that it “disagrees” with the findings of the CCI and will appeal its decision.
Denying the allegations, a Meta spokesperson said, “We disagree with the findings of the Competition Commission of India and will appeal the decision.”
They claimed that the 2021 privacy update didn’t change the privacy of its users’ personal messages, as it was offered as an “option for users”.
“As a reminder, the 2021 update did not change the privacy of people’s personal messages and was offered as a choice for users at the time. We also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update,” the spokesperson was quoted as saying by news agency PTI.
Nonetheless, the CCI’s order is expected to curb any kind of potential anti-competitive behavior in the market.
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