India restricts WhatsApp data sharing, fines Meta $25.4 mn

The Competition Commission of India (CCI) has directed WhatsApp to stop sharing user data with other Meta-owned applications for advertising purposes for the next five years, Reuters news report said. The watchdog also imposed a fine of $25.4 million on Meta for antitrust violations linked to WhatsApp’s controversial 2021 privacy policy.

WhatsApp for calling on smartphone
WhatsApp for calling on smartphone

The CCI launched an investigation into the policy in March 2021, following global criticism over its data-sharing provisions. The policy allowed WhatsApp to share user information with Facebook and its subsidiaries, raising concerns about user privacy and data misuse.

The CCI stated that the sharing of data “for purposes other than providing WhatsApp service” must not be a prerequisite for users to access the messaging platform in India.

Meta has yet to respond to the directive or the fine.

This decision comes as global tech giants, including Apple and Google, face growing scrutiny under India’s evolving regulatory landscape. The government is considering a new “Digital Competition Bill” proposed earlier this year to complement existing antitrust frameworks. However, the move has faced resistance from groups like the U.S.-India Business Council, which argue that such measures could negatively impact international businesses operating in the country.

This development marks a significant step in India’s efforts to regulate Big Tech and protect user data in the digital economy.

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