/vnd/media/agency_attachments/bGjnvN2ncYDdhj74yP9p.png)
/vnd/media/post_banners/wp-content/uploads/2015/12/facebook-lead-ads@x2.jpg)
The Competition Commission of India (CCI) fined Meta, the parent company of Facebook, WhatsApp, and Instagram, Rs 213.14 crore on Monday. Meta has been penalised for abusing its market dominance in the communications space. According to a CCI order, Meta violated the competition law by gathering user data and sharing it with other Meta businesses. According to the order, Meta and WhatsApp must put behavioural remedies into place within a specific time frame. A cease and desist order has also been served to the companies.
WhatsApp informed its users in 2021 that they would have to agree to conditions stating that their data would be shared with Meta companies starting on February 8. WhatsApp and Meta made this necessary. Nonetheless, users were granted the choice to decide whether or not to share their data in 2016.
According to CCI, "Given the network effects and lack of effective alternatives, the 2021 update forces users to comply, undermining their autonomy, and constitutes an abuse of Meta's dominant position."
CCI identified two pertinent markets for the case: online display advertising in India and over-the-top (OTT) messaging apps for smartphones in India. "In India, the market for over-the-top (OTT) messaging apps for smartphones was found to be dominated by Meta Group, which operates through WhatsApp."Additionally, it was discovered that Meta dominates the Indian online display advertising market when compared to its rivals, according to a release from CCI.
The regulator has demanded that a number of corrective actions be taken, such as prohibiting WhatsApp from sharing platform data with other Meta firms or Meta company products for advertising purposes for a period of five years.
Among other directives, CCI has stated that users in India should not be required to share user data they obtain on WhatsApp with other Meta firms or Meta company products for purposes other than offering WhatsApp services.
Additionally, CCI pointed out that competitors in the display ad sector have a barrier to entrance due to the data sharing amongst the Meta businesses. CCI recommends that Meta cease exchanging data for advertising reasons across its entities for the next five years as a corrective action.
The sector regulator has not taken the decision to force customers to consent to mandatory data gathering and sharing across Meta firms lightly. In India and many other nations with popular messaging apps like Facebook, Instagram, and WhatsApp, Meta has the biggest market share. Because these organisations share data, Meta would have an advantage that no other company could match.