Meta Platforms appeals CCI's WhatsApp penalty
Meta Platforms, formerly Facebook Inc., has appealed to the National Company Law Appellate Tribunal (NCLAT) against a Rs 213.1 crore penalty imposed by the Competition Commission of India (CCI). The CCI found that WhatsApp abused its dominant position by enforcing its 2021 privacy policy, which compelled users to accept expanded data sharing with other Meta companies without a proper opt-out option.
The CCI's investigation concluded that WhatsApp's actions:
• Restricted user choice: The "take-it-or-leave-it" approach limited user control over their data.
• Hampered competition: Data sharing with other Meta entities hindered the growth of competitors in the messaging and online advertising markets.
The CCI ordered WhatsApp to:
• Cease data sharing with other Meta companies for advertising purposes for five years.
• Obtain explicit user consent for any future data sharing with Meta subsidiaries.
• Provide an opt-out option for all Indian users, including those who accepted the 2021 update.
Meta, represented by senior counsels Kapil Sibal and Mukul Rohatgi, argued that the CCI's order has broad implications for the industry. The NCLAT has scheduled a hearing on January 16th.
Also Read: Meta appoints Joel Kaplan as Global Policy Head, replacing Nick Clegg


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