NAIROBI, Kenya- Meta-owned WhatsApp has hit a regulatory roadblock in India.
The Competition Commission of India (CCI) has fined the tech giant $25.4 million (about Sh.3 billion) and banned it from sharing user data with other Meta applications for advertising purposes for five years.
The decision, announced Monday, follows a lengthy investigation into the platform’s controversial 2021 privacy policy.
The CCI’s probe, initiated in March 2021, examined WhatsApp’s privacy policy changes that allowed data sharing between the messaging app and its parent company, Meta, including subsidiaries like Facebook and Instagram.
The move faced global criticism for potentially compromising user privacy.
In its ruling, the CCI stated, “Sharing of user data collected on WhatsApp with other Meta companies… for purposes other than providing WhatsApp service shall not be made a condition for users to access WhatsApp Service in India.”
This means users in India can now use the app without worrying that their personal information will automatically feed into Meta’s advertising ecosystem.
This fine is just one piece of a broader crackdown on tech giants operating in India.
Companies like Apple, Google, and Meta face mounting regulatory scrutiny as the government considers introducing an EU-style antitrust framework.
A February report from a corporate affairs ministry panel proposed a new Digital Competition Bill to bolster existing laws, targeting monopolistic practices in the digital economy.
While India’s government reviews this recommendation, industry stakeholders remain divided.
The U.S.-India Business Council, a powerful American lobbying group, has raised concerns, arguing that such measures could stifle innovation and harm businesses.
The CCI’s ruling underscores a growing global trend: regulators are prioritizing consumer privacy over corporate profits.
For WhatsApp, compliance with this directive means rethinking its data-sharing practices in one of its largest markets.
As users demand more control over their data, the question remains: can tech companies adapt to this new era of accountability without compromising their bottom line?
Stay tuned to Y News to see how this battle between innovation and regulation unfolds.
The Competition Commission of India (CCI) has fined the tech giant $25.4 million (about Sh.3 billion) and banned it from sharing user data with other Meta applications for advertising purposes for five years.
The decision, announced Monday, follows a lengthy investigation into the platform’s controversial 2021 privacy policy.
The CCI’s probe, initiated in March 2021, examined WhatsApp’s privacy policy changes that allowed data sharing between the messaging app and its parent company, Meta, including subsidiaries like Facebook and Instagram.
The move faced global criticism for potentially compromising user privacy.
In its ruling, the CCI stated, “Sharing of user data collected on WhatsApp with other Meta companies… for purposes other than providing WhatsApp service shall not be made a condition for users to access WhatsApp Service in India.”
This means users in India can now use the app without worrying that their personal information will automatically feed into Meta’s advertising ecosystem.
This fine is just one piece of a broader crackdown on tech giants operating in India.
Companies like Apple, Google, and Meta face mounting regulatory scrutiny as the government considers introducing an EU-style antitrust framework.
A February report from a corporate affairs ministry panel proposed a new Digital Competition Bill to bolster existing laws, targeting monopolistic practices in the digital economy.
While India’s government reviews this recommendation, industry stakeholders remain divided.
The U.S.-India Business Council, a powerful American lobbying group, has raised concerns, arguing that such measures could stifle innovation and harm businesses.
The CCI’s ruling underscores a growing global trend: regulators are prioritizing consumer privacy over corporate profits.
For WhatsApp, compliance with this directive means rethinking its data-sharing practices in one of its largest markets.
As users demand more control over their data, the question remains: can tech companies adapt to this new era of accountability without compromising their bottom line?
Stay tuned to Y News to see how this battle between innovation and regulation unfolds.
