India restricts WhatsApp sharing data with other Meta entities, imposes $25.4 mn fine

Sub : Eco

Sec : National Income and Indian Economy

Context:

Competition Commission of India (CCI) has fined Meta $25.4 million and ordered WhatsApp to stop sharing user data for advertising purposes with other Meta-owned apps for five years.
Meta, the parent company of WhatsApp, was fined for antitrust violations related to the messaging application’s 2021 privacy policy.

Background of the issue:

The CCI initiated an investigation in March 2021 into WhatsApp’s updated privacy policy, which allowed data sharing with Facebook and its subsidiaries.
The policy change sparked global backlash, leading to concerns over user privacy and competition.

Regulatory developments in India:

A recent report by a panel under the Ministry of Corporate Affairs highlighted the need for stricter digital competition regulations.
The Indian government is considering a new Digital Competition Bill, proposed to complement existing antitrust laws.
The bill aims to address concerns raised by large tech companies operating in India, similar to EU antitrust frameworks.

Competition Commission of India (CCI):

The Competition Commission of India (CCI) is a regulatory body established by the Government of India to enforce the Competition Act, 2002.
The CCI was constituted in March 2009 as a statutory body responsible for promoting and sustaining competition in markets, preventing anti-competitive practices, and protecting the interests of consumers.
It replaced the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act), following the recommendations of the Raghavan Committee.
The Commission consists of one Chairperson and six Members who shall be appointed by the Central Government.