The ruling could limit Meta’s ability to offer personalized ads on Facebook and Instagram.
Meta challenges the decision, claiming the CCI didn’t fully understand the technical complexities of WhatsApp’s privacy changes.
Meta risks rolling back key WhatsApp features due to a ban on data sharing with Meta for advertising purposes.
Meta is under pressure in India to halt or rollback some WhatsApp features after a court filing revealed that the company may be forced to comply with an antitrust ruling prohibiting WhatsApp from sharing user data with Meta for advertising purposes. This follows a directive from the Competition Commission of India (CCI) in November 2023, which claimed that Meta had expanded its data collection and sharing practices to give it an unfair advantage over rivals by abusing its market dominance and pressuring WhatsApp users to accept a contentious privacy policy in 2021.
According to the CCI’s ruling, the company will be fined $24.5 million and will be prohibited from sharing data between WhatsApp and Meta for five years. This decision may have an effect on the company’s business operations. For those who are unaware, India is one of Meta’s largest markets, home to over 350 million Facebook users and over 500 million WhatsApp users.
Meta is now attempting to reverse the directive, claiming that it will impede the ability to deliver targeted advertising on platforms such as Facebook and Instagram. In the court brief, the company argued that the ban will hamper its ability to serve targeted ads based on WhatsApp exchanges, such as a business communicating with a client about a product. Furthermore, if the corporation complies with the CCI order, it may have to reverse or suspend various features and goods.
Meta claims that the antitrust monitor did not communicate with the company before issuing such a big directive. The business also questioned the CCI’s ability to understand the technical complexity of WhatsApp’s privacy standards and how the modifications may effect its services.
The issue occurred when WhatsApp revised its privacy statement in 2021 and requested users to agree to new rules that permitted Meta to share more data with the company. The CCI contended that WhatsApp violated India’s competition laws by essentially pressuring users to accept these conditions without providing them with an opt-out choice.
Meta is currently concentrating on contesting the CCI’s decision in an Indian tribunal, even as it continues to defend its policy modifications. While the matter may take months to resolve, the tribunal has the power to temporarily halt the CCI’s ruling while the appeal is being heard. Meta’s plea is scheduled to be heard this week.
Follow Us
Ashish Singh
Ashish Singh is the Chief Copy Editor at Digit. Previously, he worked as a Senior Sub-Editor with Jagran English from 2022, and has been a journalist since 2020, with experience at Times Internet. Ashish specializes in Technology. In his free time, you can find him exploring new gadgets, gaming, and discovering new places. View Full Profile
