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Apps



INDIA ORDERS META TO CURB WHATSAPP DATA SHARING, LEVIES $25M FINE

Manish Singh
8:00 AM PST · November 18, 2024



India’s competition watchdog has ordered WhatsApp to stop sharing user data with
other Meta units for advertising purposes for five years and also levied a fine
of $25.4 million for antitrust violations related to WhatsApp’s controversial
2021 privacy policy.

The Competition Commission of India, which began the investigation in 2021,
found that WhatsApp’s “take-it-or-leave-it” privacy update constituted an abuse
of Meta’s dominant position by forcing users to accept expanded data collection
without an opt-out option.




WhatsApp’s 2021 privacy policy update required users to share their data with
Meta companies in order to continue using the messaging service, removing a
previous opt-out option that had existed since 2016. The mandatory data-sharing
requirement expanded the scope of data collection and processing by Meta’s group
companies.

The watchdog determined that Meta was dominant in two key markets: so-called
“over-the-top” messaging apps through smartphones in India, and online display
advertising.

It concluded that WhatsApp’s mandatory data-sharing created entry barriers for
Meta’s rivals and resulted in denial of market access in the display advertising
market.

In addition to the monetary penalty, the CCI mandated significant changes to
WhatsApp’s data practices in India.

The messaging platform must provide users with detailed explanations of what
data is shared with Meta companies and for what purpose. It must also give users
prominent opt-out options through in-app notifications and settings menus,
applying these changes to both new and existing users who accepted the 2021
update.



The ruling represents the latest regulatory challenge for Meta in India, where
WhatsApp has more than 450 million monthly active users.

Topics

Apps, India, Meta, WhatsApp


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Manish Singh

Reporter, India

@refsrc
Manish Singh is a senior reporter at TechCrunch, covering India’s startup scene
and venture capital investments. He also reports on global tech firms’ India
play. Before joining TechCrunch in 2019, Singh wrote for about a dozen
publications, including CNBC and VentureBeat. He graduated in Computer Science
and Engineering in 2015. He is reachable on manish(at)techcrunch(dot)com.
View Bio



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