India has imposed a $25.4 million fine on Meta and directed its messaging platform, WhatsApp, to stop sharing user data with other Meta-owned applications for advertising purposes for five years. The Competition Commission of India (CCI) announced the decision on Monday, citing antitrust violations linked to WhatsApp’s 2021 privacy policy.
The privacy policy, introduced in March 2021, permitted data sharing between WhatsApp and Meta entities, including Facebook. The move drew significant global backlash and prompted the CCI to launch an investigation into its implications. In its ruling, the watchdog stated that user data collected on WhatsApp must not be shared with Meta companies for purposes unrelated to providing WhatsApp services. It also clarified that access to WhatsApp services in India cannot be conditional on such data sharing.
Meta has not yet issued a public response to the ruling.
This action adds to the growing regulatory scrutiny faced by global tech giants in India. Companies like Apple and Google are already navigating challenges stemming from proposed antitrust laws modeled after those in the European Union. The Indian government is currently reviewing recommendations from a February report by a corporate affairs ministry panel, which advocates for a new “Digital Competition Bill.”
Despite government backing, the U.S.-India Business Council has expressed concerns about the potential business impact of such regulations. These measures signal a shift in India’s approach to big tech, emphasizing tighter control over data privacy and fair competition.
Featured image courtesy of Harian Metro
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