The CCI told Meta and WhatsApp to stop certain actions. They must also follow specific rules soon. Meta, through WhatsApp, dominates two key markets in India. These are the OTT messaging apps on smartphones and online display advertising.
In January 2021, WhatsApp told users about changes in its terms and privacy. Users had to accept by February 8, 2021. Earlier, in August 2016, users could choose not to share their data. The new rules forced data sharing to keep using WhatsApp.
The CCI saw the 2021 update as unfair — it was a “take-it-or-leave-it” offer and hurt user choices. Meta abused its market power and the CCI decided this was an unfair practice.
The Commission also noticed that sharing WhatsApp data with other Meta companies was unfair. It blocked other companies from gaining a foothold in the display ad market. This went against the rules set by the Competition Act.
The CCI told WhatsApp not to share user data with Meta companies for ads for five years. After this time, data-sharing rules will apply. For non-advertising reasons, WhatsApp must explain its data sharing. Each type of data sharing must have a clear reason.
WhatsApp users will get the choice to stop data sharing. They can change these settings in the app. These new rules show that big tech companies in India are being watched closely. Fair competition is important in the digital world.
Also read: Experts feel social media companies must be kept on a leash
