Meta Platforms Inc. (formerly Facebook) has appealed to the National Company Law Appellate Tribunal (NCLAT) against a ₹213.14 crore penalty imposed by the Competition Commission of India (CCI). The penalty was levied for alleged abuse of Meta’s dominant position related to WhatsApp’s 2021 privacy policy.
The CCI imposed the penalty on November 18, 2022, finding that WhatsApp’s updated privacy policy, implemented in February 2021, abused Meta’s dominant position. Unlike its 2016 policy, which allowed users to opt out of data sharing with Facebook, the 2021 update made such sharing mandatory for continued use of the platform. This “take-it-or-leave-it” approach was deemed unfair and in violation of the Competition Act, 2002, undermining user autonomy.
In addition to the fine, the CCI issued a cease-and-desist order, requiring Meta and WhatsApp to implement specific behavioural changes. These included a ban on sharing user data between WhatsApp and Meta for five years and the inclusion of detailed explanations in the privacy policy about how user data is shared and its purposes. The Commission also mandated that data sharing could not be a pre-condition for using WhatsApp in India, particularly for advertising purposes.
The CCI launched its investigation following complaints about the 2021 policy and concluded that Meta, through WhatsApp, held a dominant position in India’s smartphone messaging and online advertising markets.
