Meta may roll back some WhatsApp features in India after antitrust data sharing ban
WhatsApp’s parent company Meta may have to roll back some features in India due to a recent antitrust ruling. here are the details.
listen to the story
According to Reuters inputs, WhatsApp’s parent company Meta may have to roll back some features in India due to the recent antitrust verdict. The Competition Commission of India (CCI) has banned WhatsApp from sharing user data with Meta for advertising purposes. The decision is said to impact Meta’s ability to offer personalized ads on its platforms, including Facebook and Instagram.
The CCI’s November decision reportedly found that Meta had abused its market dominance by forcing WhatsApp users to accept the new privacy policy. This policy expanded the scope of user data sharing, giving Meta an unfair advantage over its competitors. Under its order, CCI imposed a fine of $24.5 million and imposed a five-year ban on Meta’s data-sharing practices in India, the company’s largest market with over 500 million WhatsApp users.
However, Meta is actively challenging the directive. In a recent petition filed in the court, the company expressed concerns that the ban on data sharing between WhatsApp and Meta will harm its ability to deliver personalized ads. Meta reported that Indian businesses will face difficulties in effectively targeting users on Facebook and Instagram, especially businesses that interact with customers on WhatsApp.
The company’s appeal emphasizes that the data-sharing policy does not expand Meta’s data collection but only allows for more efficient integration of business features. However, the CCI disagreed, saying that WhatsApp’s policy forces users to accept terms they do not fully understand, and there is no option to opt out. The Commission is now pushing for WhatsApp to allow users to choose whether they want to share their data with Meta.
Challenging the decision, Meta criticized the CCI for lacking the technical understanding required to assess the impact of the decision. The company argues that the regulator should have consulted WhatsApp and Meta before taking such an impactful decision.
While Meta continues to protest the order, the outcome of its appeal could take several months. Meanwhile, the Indian Appellate Tribunal is likely to hear the company’s plea this Thursday.