CCI to penalize WhatsApp over controversial privacy policy update: Report
The Competition Commission of India (CCI) is gearing up to penalize WhatsApp for its controversial privacy policy update, as per HT Mint. The changes allow the messaging platform to share certain user data with its parent company, MetaPlatforms Inc, formerly known as Facebook. The move has raised concerns among regulators across the globe, including India's trade practices watchdog.
CCI's investigation finds WhatsApp, Meta violated competition law
According to the report, the Director General of Investigation (DG) of the CCI has found WhatsApp and Meta guilty of violating sections of India's competition law, prohibiting abuse of dominance. The DG's report has been submitted to the CCI, which is now drafting an order against both companies for their alleged violations. This order may include a financial penalty.
CCI's draft order could impose significant penalties
The CCI's draft order is likely to be finalized and issued soon. According to amendments made last year to the Competition Act, penalties for such violations can go up to 10% of the global sales or income of the entities involved. Reportedly, the CCI found that WhatsApp's sharing of business transaction information with Meta gave group entities an unfair advantage over competing platforms.
WhatsApp's response to CCI's proceedings
In response to the ongoing proceedings, a WhatsApp spokesperson said, "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 without having their accounts deleted or losing functionality."
2021 privacy policy update under scrutiny
The case stems from WhatsApp's 2021 privacy policy update, which detailed how businesses could use Facebook-hosted services to store and manage their WhatsApp chats with customers. Even though WhatsApp clarified that the policy update didn't affect the privacy of customer messages with friends or family, regulators argue that there is still enough ground for regulatory action.
