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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Azerbaijani airliner with 67 people onboard crashes in Kazakhstan leaving 32 survivors
Moscow, Dec 25: An Azerbaijani airliner with 67 people onboard crashed Wednesday in the Kazakhstani city of Aktau, leaving at least 32 survivors, according to officials. More than 30 people are likely dead.
Kazakhstan's Emergency Ministry said in a Telegram statement that those on board included five crew. At least 29 have been hospitalized, the ministry told Russia's state news agency RIA Novosti.
Russian news agency Interfax quoted medical workers as saying that four bodies have been recovered and emergency workers at the scene as saying that both pilots, according to a preliminary assessment, died in the crash.
The Embraer 190 aircraft made an emergency landing 3 km from the city, Azerbaijan Airlines said earlier.
Kazakhstan's Emergency Ministry initially said 25 people survived the crash, later revising that number to 27, 28, and then 29 as the search and rescue operation continued at the site of the crash, bringing the supposed death toll down.
Prosecutor General's Office in Azerbaijan later reported that at least 32 people survived the crash, adding that the number wasn't final.
The number of survivors could mean that over 30 people may be dead.
The plane was originally scheduled to travel from the Azerbaijani capital of Baku to the Russian city of Grozny in the North Caucasus. According to Azerbaijan Airlines, 37 passengers were Azerbaijani citizens. There were also 16 Russian nationals, six Kazakhstani and three Kyrgyzstani citizens, it said.
RIA Novosti quoted Russia's civil aviation authority, Rosaviatsia, as saying that preliminary information showed that the pilot had chosen to divert to Aktau after a bird strike on the aircraft led to “an emergency situation on board”.
Mobile phone footage circulating online appeared to show the aircraft making a steep descent before smashing into the ground in a fireball. Other footage showed part of its fuselage ripped away from the wings and the rest of the aircraft, lying upside in the grass. The footage corresponded to the plane's colors and its registration number.
Some of the videos posted on social media showed survivors dragging fellow passengers away from the wreckage of the plane.
Flight-tracking data from FlightRadar24.com showed the aircraft making what appeared to be a figure-right once nearing the airport in Aktau, its altitude moving up and down substantially over the last minutes of the flight before impacting the ground.
FlightRadar24 separately said in an online post that the aircraft had faced “strong GPS jamming” which “made the aircraft transmit bad ADS-B data”, referring to the information that allows flight-tracking websites to follow planes in flight. Russia has been blamed in the past for jamming GPS transmissions in the wider region.
Embraer did not immediately respond to a request for comment early Wednesday morning. In a statement, Azerbaijan Airlines said it would keep members of the public updated and changed its social media banners to solid black.
Azerbaijan's state news agency, Azertac, said that an official delegation consisting of Azerbaijan's emergency situations minister, the country's deputy general prosecutor, and the vice president of Azerbaijan Airlines had been dispatched to Aktau to conduct an “on-site investigation”.
Azerbaijani President Ilham Aliyev, who had been traveling to St Petersburg, returned to Azerbaijan on hearing news of the crash, the president's press service said. Aliyev was due to attend an informal meeting of leaders of Commonwealth of Independent States, a bloc of former Soviet countries founded after the collapse of the Soviet Union.
Aliyev expressed his condolences to the families of the victims in a statement on social media. “It is with deep sadness that I express my condolences to the families of the victims and wish a speedy recovery to those injured,” he wrote.
Russian President Vladimir Putin spoke to Aliyev on the phone and expressed his condolences, Kremlin spokesman Dmitry Peskov told reporters.
Both Kazakhstani and Azerbaijani authorities were investigating the crash. Embraer told The Associated Press in a statement that the company is “ready to assist all relevant authorities.”
Azerbaijan Airlines passenger plane flying from Baku to Grozny crashed in Aktau, Kazakhstan. pic.twitter.com/EnicqHcTGM
— Clash Report (@clashreport) December 25, 2024
