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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Numerous children injured by vehicle at school gate in central China
Taipei (AP): Numerous children were injured by a vehicle at the gate of an elementary school in central China's Hunan province on Tuesday morning, reports said.
Students were arriving for classes around 8 am at Yong'an Elementary School in the city of Changde when the incident occurred.
Few details were immediately available, and it wasn't clear whether the vehicle had lost control or whether it was a deliberate attack.
The official Xinhua News Agency said sacceveral adults were also injured and identified the vehicle as a small white SUV. It said the driver was subdued by parents and security guards, and some of the injured were sent to the hospital immediately, with the total casualty count still unknown.
Footage posted on Chinese social media showed the injured lying on the road while terrified students ran past the gate and inside the schoolhouse.
Comments on Chinese internet sites reflected anger and frustration with recurring incidents of violence against citizens by those venting anger at society.
“No matter what the reason is, innocent children should not be harmed,” said one comment on the popular Weibo social media site. “Timely resolve conflicts, prevent such incidents and severely punish the perpetrators,” said another.
While China has much lower rates of violence than many countries — personal gun ownership there is illegal — knifings and the use of homemade explosives still occur.
Chinese schools have been subject to numerous attacks by people armed with knives or using vehicles as weapons.
A stabbing attack at a vocational school in the eastern Chinese city of Wuxi on Saturday left eight people dead and 17 others injured.
That came shortly after a man drove his car into people at a sports facility in the southern city of Zhuhai, leaving 35 people dead and 43 others injured.
In September, three people were killed in a knife attack in a Shanghai supermarket, and 15 others were injured. Police said at the time that the suspect had personal financial disputes and came to Shanghai to “vent his anger.”
The same month, a Japanese schoolboy died after being stabbed on his way to school in the southern city of Shenzhen.
The Chinese government generally censors internet content it deems overly sensitive or political, and some images of the school incident were quickly taken down.
Most Western social media sites and search engines like Google are blocked in China, limiting available content even while some people use tools like VPNs and send news through Chinese social media before the censors have time to catch it.
