The Competition Commission of India ( CCI ) is reportedly set to issue an order against WhatsApp over its controversial privacy policy update.
According to a report by Mint, the social media platform, along with its parent company Meta (formerly Facebook), may have violated competition law by abusing their dominant market position. The issue stems from WhatsApp’s 2021 privacy policy, which allowed the platform to share certain user data with Meta, sparking concerns over privacy violations.
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Following an investigation, the CCI’s director general submitted a report, and a draft order has been finalized. If WhatsApp is found guilty of anti-competitive practices, the company could face a fine of up to 10% of its global turnover. In response, a WhatsApp spokesperson emphasized that the update did not affect the confidentiality of users’ private chats and that users were given the option to decline the update without losing access to the platform.
WhatsApp’s 2021 policy update has drawn scrutiny from regulators worldwide. The Indian government also introduced the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, under section 87(2) of the Information Technology Act, 2000, replacing the 2011 guidelines. These new rules mandate a grievance redressal system for OTT platforms and digital media portals in India.
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The Centre informed the Delhi High Court that platforms like WhatsApp and Facebook, which monetize user data for commercial purposes, cannot legally claim to protect user privacy.
In an affidavit, the Ministry of Electronics and Information Technology (MeitY) opposed WhatsApp and Facebook’s challenge to the amended IT Rules, arguing that WhatsApp has already violated users’ fundamental rights by not providing them with adequate dispute resolution mechanisms within India.
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