Meta to challenge Rs 213.14 crore fine imposed by CCI over WhatsApp privacy policy

Meta has announced its intention to contest the ₹213.14 crore fine imposed by the Competition Commission of India (CCI) over alleged anti-competitive practices linked to WhatsApp's 2021 privacy policy update. A Meta spokesperson told Business Today that the company plans to appeal the decision, asserting that the update was both optional and transparent.

According to Meta, the privacy policy update in 2021 did not affect the privacy of users' personal messages on WhatsApp. The spokesperson highlighted that the update introduced new, optional business features and aimed to provide greater transparency regarding data collection and usage.

Meta claimed that users were not forced to accept the update. "We ensured no one would lose access to their WhatsApp accounts or have their functionality affected because of this update," the spokesperson said, countering CCI's view that users were coerced into accepting the changes.

Meta emphasised WhatsApp's significant role in India's economy, noting its importance in connecting people, businesses, and government institutions. During the COVID-19 pandemic, WhatsApp was widely used to deliver citizen services and support small businesses.

Meta argued that WhatsApp's integration with the larger Meta ecosystem has facilitated these services. "WhatsApp is able to do all of this because it offers services supported by Meta," the spokesperson added.

The CCI's ruling stated that the 2021 policy update compelled users to accept expanded data-sharing terms with Meta companies, effectively removing their choice. It also found that Meta used WhatsApp's dominance in the messaging market to gain an unfair advantage in the digital advertising market, affecting competition and user autonomy.

However, Meta disputes these claims, maintaining that the update was intended to enhance the user experience and that no anti-competitive behaviour occurred.

Meta has expressed its commitment to resolving the issue with the CCI while continuing to offer services that users and businesses depend on. The company reiterated its belief in WhatsApp as a valuable tool for India's digital growth, particularly for small businesses and local communities.

"We are committed to finding a path forward that allows us to continue providing the experiences that people and businesses have come to expect from us," the spokesperson said.

As Meta prepares to challenge the CCI's decision, the result could set an important precedent for how digital platforms balance user privacy, competition, and business growth in India.