Meta Faces ₹213 Crore Fine for Antitrust Violations Linked to WhatsApp Policy Changes

The Competition Commission of India (CCI) has imposed a ₹213.14 crore fine on Meta, the parent company of WhatsApp, for alleged antitrust violations tied to the messaging platform's controversial 2021 privacy policy update. The regulator highlighted concerns over the manner in which user data was collected and shared across Meta platforms, accusing WhatsApp of abusing its dominant market position.

In addition to the fine, the CCI has issued cease-and-desist orders and mandated behavioural adjustments for WhatsApp. Among these, the messaging platform has been barred from sharing user data with other Meta companies for advertising purposes for five years.

The 2021 policy update required users to accept expanded data collection and sharing terms. While Indian users were compelled to comply, WhatsApp users in the European Union were exempt due to stricter data privacy regulations in the bloc. The CCI concluded that this "take-it-or-leave-it" approach imposed unfair conditions on Indian consumers, violating the Competition Act.

The Commission also criticized the policy for creating unfair market barriers. It stated that sharing WhatsApp user data for purposes beyond messaging services restricts competitors in the online advertising market. This behaviour, according to the CCI, consolidates Meta’s dominance in the display advertising sector by leveraging its position in the messaging app market.

The CCI further directed WhatsApp to provide clear disclosures about the specific types of data shared with Meta companies and their purposes. It emphasized that data sharing unrelated to WhatsApp’s core messaging service should not be a condition for accessing the platform in India.

The controversy around the privacy policy update had previously sparked widespread backlash, leading many users to migrate to alternative platforms such as Signal and Telegram. Following this, the CCI initiated an independent investigation in 2021, scrutinizing the potential misuse of WhatsApp’s dominant market position.

Although Meta and WhatsApp challenged the investigation in the Delhi High Court, arguing that privacy policy issues were already under review by the judiciary, their appeals were dismissed in 2022. The court affirmed the CCI’s stance, acknowledging WhatsApp’s dominant position and its “lock-in effect,” which makes it difficult for users to shift to competing platforms despite dissatisfaction.

Meta has yet to issue an official response to the ruling.