India: Meta may pause some features due to antitrust ruling
What's the story
US tech giant Meta Platforms Inc has warned it may have to "roll back or pause" some features in India. The move comes in response to an antitrust directive from the Competition Commission of India (CCI). The directive stops WhatsApp from sharing user data with Meta for advertising reasons, according to a court filing by the company.
Legal dispute
Meta challenges CCI's directive
Meta is appealing against the CCI's November directive, which accused the company of abusing its dominance and coercing WhatsApp users into accepting a privacy policy from 2021. Reportedly, the policy expanded user data collection and sharing, giving Meta an unfair advantage over competitors. Publicly defending its policy change, Meta has raised concerns about the CCI's decision in its appeal filing.
Business implications
CCI's ban on data sharing could impact Meta's ad strategy
The CCI's $24.5 million fine and five-year ban on data sharing in India, could restrict Meta's ability to serve personalized ads on Facebook and Instagram. India is Meta's biggest market with over 350 million Facebook and over 500 million WhatsApp users. Meta's apprehensions were revealed in a nearly 2,000-page filing with the CCI, dated January 3.
Adverse effects
Meta outlines potential impact of data sharing ban
Meta has elaborated on the possible consequences of the data sharing ban in its filing. The company said an Indian fashion business might not be able to personalize ads on Facebook/Instagram, based on their interaction with a WhatsApp user regarding a particular clothing line. "Under its widest interpretation, implementing the remedy will likely require Meta to roll back or pause several features and products," it said.
Financial impact
Meta's commercial viability at risk
Meta further claimed that the data sharing ban "impacts Meta's and WhatsApp's ability to remain commercially viable." However, the company did not disclose any specific financial figures. In the fiscal year 2023-24, Facebook India Online Services—the entity that sells advertising inventory in India—reported a revenue of $351 million, its highest in at least five years.