India’s Competition Commission of India (CCI) has imposed a fine of $25.4 million on WhatsApp, owned by Meta, for violating antitrust regulations. The regulatory body has also directed WhatsApp to refrain from sharing user data with other Meta-owned applications for the next five years.
The CCI’s investigation was initiated in March 2021 following widespread concerns over WhatsApp’s updated privacy policy, which allowed the company to share user data with Facebook and its affiliates. This move sparked global backlash, with many users questioning the implications for their privacy.
The CCI’s order states that WhatsApp cannot make the sharing of user data with other Meta companies a condition for accessing the messaging service in India. The regulator has taken a strong stance against such practices, emphasizing the importance of protecting user privacy and ensuring fair competition.
This decision underscores India’s growing role in regulating the global technology industry. The country is actively working to strengthen its digital regulatory framework, with the proposed Digital Competition Bill aiming to address the increasing dominance of large tech companies. While the bill is still under consideration, it has already drawn criticism from industry groups like the U.S.-India Business Council, which has expressed concerns about its potential impact on business operations.
The CCI’s action against WhatsApp highlights the increasing scrutiny faced by tech giants around the world. As regulators worldwide grapple with the challenges posed by digital platforms, it is likely that we will see more enforcement actions against companies that abuse their market power or violate consumer privacy rights.