CCI slaps Meta with Rs 213 crore fine over WhatsApp’s 2021 privacy policy update
New Delhi, Nov 18: The Competition Commission of India (CCI) on Monday imposed a penalty of Rs 213.14 crore on social media major Meta for unfair business ways with respect to WhatsApp privacy policy update done in 2021.
Besides, the competition watchdog has directed Meta to “cease and desist” from anti-competitive practices.
Meta and WhatsApp have also been asked to implement certain behavioural remedies within a defined timeline to address the anti-competition issues, according to a CCI order.
The regulator has called for implementing various remedial measures, including barring WhatsApp from sharing data collected on its platform with other Meta companies or Meta company products for advertising purposes for five years.
Among other directions, CCI has said that sharing of user data collected on WhatsApp with other Meta companies or Meta company products for purposes other than for providing WhatsApp services shall not be made a condition for users to access WhatsApp Service in India.
The Competition Commission of India (Commission) on Monday imposed a penalty of Rs 213.14 crore on Meta for abusing its dominant position,
Passing the order against abuse of dominance, the Competition Commission of India (CCI) said this (penalty) relates to how WhatsApp's 2021 Privacy Policy was implemented and how user data was collected and shared with other Meta companies.
For the case, CCI delineated two relevant markets -- OTT messaging apps through smartphones in India, and online display advertising in India. "Meta Group operating through WhatsApp was found to be dominant in the market for OTT messaging apps through smartphones in India. "Furthermore, it was also found that Meta holds a leading position compared to its competitors in online display advertising in India," CCI said in a release.
Starting from January 2021, WhatsApp notified users about updates to its terms of service and privacy policies.
The in-app notification, effective from February 8, 2021, stated that users were required to accept these terms, including expanded scope of data collection as well as mandatory data sharing with Meta companies, to continue using WhatsApp.
Under the previous privacy policy dated August 25, 2016, WhatsApp users were given the option to decide whether they wanted to share their data with Facebook, the release said.
"However, with the latest policy update in 2021, WhatsApp made data sharing with Meta mandatory for all users, removing the earlier option to opt-out. As a result, users had to accept the new terms, which include data sharing with Meta, in order to continue using the platform," it added.
The watchdog has concluded that the 2021 policy update by WhatsApp on a "take-it-or-leave-it" basis constitutes an imposition of unfair condition under the Competition Act, as it compels all users to accept expanded data collection terms and sharing of data within Meta Group without any opt out.
"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. Accordingly, the Commission finds that Meta (through WhatsApp) has contravened Section 4(2)(a)(i) of the Act," it said.
Further, CCI said that sharing of WhatsApp users' data between Meta companies for purposes other than providing WhatsApp Service creates an entry barrier for the rivals of Meta and thus, results in denial of market access in the display advertisement market.
According to the regulator, Meta has engaged in leveraging its dominant position in the OTT messaging apps through smartphones to protect its position in the online display advertising market in contravention of the competition law.
CCI has barred WhatsApp from sharing data collected on its platform with other Meta companies or Meta company products for advertising purposes for five years and the debarment period will start from the date of receipt of this order.
With respect to sharing of WhatsApp user data for purposes other than advertising, the regulator said WhatsApp's policy should include a detailed explanation of the user data shared with other Meta companies or Meta company Products.
"This explanation should specify the purpose of data sharing, linking each type of data to its corresponding purpose," it said.
The watchdog also said that sharing of user data collected on WhatsApp with other Meta companies or Meta company products for purposes other than for providing WhatsApp services shall not be made a condition for users to access WhatsApp Service in India.
Regarding sharing of WhatsApp user data for purposes other than for providing WhatsApp services, CCI said all users in India (including users who have accepted 2021 update) will be provided with the choice to manage such data sharing by way of an opt-out option prominently through an in-app notification.
Also, the regulator has asked for the option to review and modify their choice with respect to such sharing of data through a prominent tab in settings of WhatsApp application, and all future policy updates should comply with these requirements.
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Thailand, Cambodia agree to ceasefire talks after Trump steps in, but border clashes persist
Surin (Thailand) (AP): Thailand and Cambodia on Sunday signalled their readiness to negotiate an end to a deadly border dispute following mediation efforts by US President Donald Trump. The fighting, now in its fourth day, has killed at least 33 people and displaced more than 168,000.
Trump posted on Truth Social on Saturday that he spoke to the leaders of Thailand and Cambodia and suggested he would not move forward with trade agreements with either country if the hostilities continued. He later said both sides agreed to meet to negotiate a ceasefire.
Cambodian Prime Minister Hun Manet said Sunday his country agreed to pursue an “immediate and unconditional ceasefire.” He said Trump told him that Thailand had also agreed to halt attacks following Trump's conversation with Acting Thai Prime Minister Phumtham Wechayachai.
“This is positive news for the soldiers and people of both countries,” Hun Manet said in a statement.
He said he tasked his deputy, Foreign Minister Prak Sokhonn, to coordinate next steps with US Secretary of State Marco Rubio and to engage directly with Thailand's foreign minister to implement the ceasefire.
Thailand expressed cautious support. Phumtham thanked Trump and said that Thailand agreed in principle to a ceasefire but stressed the need for “sincere intention” from Cambodia, the Thai Foreign Ministry said. Phumtam called for swift bilateral talks to discuss concrete steps toward a peaceful resolution, it said.
The fighting first flared Thursday after a land mine explosion along the border wounded five Thai soldiers. Both sides blamed each other for starting the clashes. Both countries recalled their ambassadors and Thailand closed its border crossings with Cambodia.
Despite the diplomatic efforts, fighting continued Sunday along parts of the contested border, with both sides refusing to budge and trading blame over renewed shelling and troop movements.
Col Richa Suksowanont, a Thai army deputy spokesperson, said Cambodian forces fired heavy artillery into Surin province, including at civilian homes early Sunday. He said Cambodia also launched rocket attacks targeting the ancient Ta Muen Thom temple claimed by both countries, and other areas in a bid to reclaim territory secured by Thai troops. Thai forces responded with long-range artillery to strike Cambodian artillery and rocket launchers.
Richa said Trump's efforts to mediate was a “separate matter.” The battlefield operations will continue and a ceasefire can only happen if Cambodia formally initiates negotiations, he added.
“Any cessation of hostilities cannot be reached while Cambodia is severely lacking in good faith and repeatedly violating the basic principles of human rights and humanitarian law," Thailand's Foreign Ministry said separately.
Cambodian Defense Ministry spokesperson Lt. Gen. Maly Socheata accused Thai forces of escalating the violence with bombardment of Cambodian territory early Sunday, followed by a "large-scale incursion" involving tanks and ground troops in multiple areas.
“Such actions undermine all efforts toward peaceful resolution and expose Thailand's clear intent to escalate rather than de-escalate the conflict,” she said.
Thailand has reported 20 deaths, mostly civilians, while Cambodia said 13 people have been killed. More than 131,000 people in Thailand have evacuated to safe locations and over 37,000 people fled from three Cambodian provinces. Many border villages are mostly deserted, with many schools and hospitals shut.
Pichayut Surasit, an air-conditioning technician in Thailand, said the sudden outbreak of fighting meant leaving his work in Bangkok to return home to protect his family.
“I didn't have the heart to continue with my work when I heard the news. I wanted to come back as soon as possible but I had to wait until the evening,” he said. Now at a shelter in Surin housing some 6,000 evacuees, Pichayut worries for his wife and twin daughters, hoping the conflict will end soon so they can return to their home in Kap Choeng district, one of the hardest hit by shelling.
Bualee Chanduang, a local vendor who moved to the same shelter Thursday with her family and pet rabbit, is counting on swift negotiations to end the violence. “I pray for God to help that both sides can agree to talk and end this war,” she said.
The U.N. Security Council has called on the Association of Southeast Asian Nations, a regional bloc, to mediate peace between the two members. Human Rights Watch has condemned the reported use of cluster munitions, weapons banned by International law, in populated areas, and urged both governments to protect civilians.
The 800-kilometer (500-mile) frontier between Thailand and Cambodia has been disputed for decades, but past confrontations have been limited and brief. The latest tensions flared in May when a Cambodian soldier was killed in a confrontation that created a diplomatic rift and roiled Thailand's domestic politics.
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