Competition Commission of India (CCI) vs. WhatsApp and Meta
The Competition Commission of India (CCI) emphasized the importance of consumer choice regarding data sharing with Internet Intermediaries like WhatsApp. The CCI's stand was made clear during its submissions before the National Company Law Appellate Tribunal (NCLAT).
Key Arguments by CCI
- The CCI argued that the choice of sharing or not sharing data should solely rest with the consumer.
- WhatsApp should limit data collection strictly to what is necessary for its service provision, avoiding non-essential data like medical history.
- Users must have the option to opt-out of data sharing even after initially agreeing to it.
Penalties and Jurisdiction
- CCI imposed a fine of ₹213.14 crore on WhatsApp for its alleged abuse of dominant position linked to the 2021 privacy policy.
- Meta, the parent company, was penalized as WhatsApp’s revenue is integrated into Meta’s accounts.
Legal Proceedings and Arguments
- WhatsApp and Meta contested the CCI's decision, arguing that the CCI exceeded its jurisdiction by addressing data privacy instead of focusing solely on competition issues.
- The appellate tribunal had earlier warned that a five-year ban on WhatsApp could potentially collapse its business model, as it provides services for free.
- NCLAT refused to stay the penalty but required Meta to deposit 50% of the fine for any stay to be effective.
Additional Information
- The acquisition of WhatsApp by Meta was driven by WhatsApp's vast user base.
- WhatsApp's response to CCI's arguments is expected soon, with the judgment likely to be reserved after all arguments conclude.
