India is one of the key markets for WhatsApp, with more than 535 million registered users. (Photo: Shutterstock)
Meta-owned WhatsApp is under the fresh scanner of the Competition Commission (CCI), which is likely to issue an order over its three-year-old contentious update on privacy policy and service terms. The order may include a fine, Mint reported on Monday.
The update would enable WhatsApp to share some user data with its parent company, Meta (formerly Facebook). This has sparked concerns from regulators in several countries. The policy came into effect in January 2021 and outlined how businesses could utilise Facebook-hosted services to manage their customer chats.
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What is CCI planning to do?
According to the report, a probe into the matter has concluded that through such an update, WhatsApp and Meta violated competition law by abusing their dominant position in the market.
The probe of CCI’s director general of investigation has been used as the basis of the regulator’s draft order. The order is expected to be finalised soon and will be issued to both the companies, the report added.
The controversial update gives the company an ‘unfair edge’ over competitors because user business transaction data helps social media platforms target ads and marketing more effectively.
The latest amendments to the Competition Act have provisions for penalty up to 10 per cent of the global sales or income of the entities concerned in cases of violations. Meta has faced similar regulations in countries like Germany and other European countries as well.
How did WhatsApp react to the news?
India is one of the key markets for WhatsApp, with more than 535 million registered users, the highest in the world. Brazil follows in a distant second with only 148 million users. When asked about CCI’s potential action, WhatsApp told Mint, “CCI proceedings are sub-judice and we can’t comment on it.”
“WhatsApp gave users the choice of accepting the Privacy Policy Update, and users who chose not to accept the update continue to use WhatsApp to communicate with friends and family without having their accounts deleted or losing functionality,” the spokesperson said.
WhatsApp maintains that the changes were only related to optional business features on the platform.
First Published: Oct 14 2024 | 2:56 PM IST
