Why was a fine of Rs 213 crore imposed on Meta, what is the whole matter?

New Delhi: On Monday, a fine of Rs 213.14 crore was imposed on ‘Meta’, the parent company of platforms like WhatsApp, Facebook and Instagram. This fine has been imposed by the Competition Commission of India (CCI). Meta is accused of adopting inappropriate professional practices through WhatsApp’s privacy policy update in 2021. However, Meta disagrees with the decision, saying it plans to appeal the move. Come, let us understand the whole matter.

Why was Meta fined?

This entire controversy is regarding the updated privacy policy implemented by Meta for WhatsApp in 2021. In fact, in January 2021, WhatsApp had informed users about its new privacy policy and told them that it is necessary to accept these new terms to continue using the application. These terms also included sharing data with other Meta companies. There was no other option, so users had to accept this update. CCI says that this step has given Meta an unnecessary dominant position over others.

What did the meta say about the update?

In its clarification, Meta said that the 2021 update has not made any changes in the privacy of users’ messages and at that time users were given an option. The company also said that due to this update no one’s account was closed nor was there any problem in WhatsApp services. According to Meta, a new business feature was added through this update, which can bring more transparency in storing and using data. After this update, WhatsApp became even more beneficial for users and businesses, which has also helped small industries in India.

Apart from the fine, what instructions were given?

The regulator has asked WhatsApp not to share the data collected on its platform with other meta companies or meta products. After this step, WhatsApp is not in a position to share user data with anyone for the purpose of advertising for the next 5 years. As far as data sharing other than advertising is concerned, WhatsApp will have to give detailed clarification regarding this in its policy. It should be clear what is the purpose of data sharing. Apart from this, necessary steps should be taken regarding what has happened after the update. The regulator has also said that all users in India will get the option to ban data sharing through opt out. This also includes those users who had approved the 2021 update.

How did this whole matter escalate in India?

In January 2021, WhatsApp announced changes in its privacy policy. In this, users were asked to accept the terms of data sharing, so that their data could be shared with Facebook and other companies. In March 2021, the Competition Commission of India (CCI) took cognizance of the matter and initiated an investigation. After this, Meta (formerly Facebook) challenged the matter in Delhi High Court in April 2021, but the court rejected Meta’s petition. In October 2022, the Supreme Court also refused to stop the investigation. Now the regulator has taken action against Meta.