Meta, the parent company of Facebook, Instagram, and WhatsApp, has hit a significant roadblock in India following a trademark decision by the Competition Commission of India (CC).
According to a Reuters report, the CCI has prohibited WhatsApp from sharing user data with Meta for advertising purposes, accusing the company of leveraging its dominant position to compel users into accepting a controversial 2021 privacy policy.
The implications of this decision could be profound. India is a critical market for Meta, home to over 350 million Facebook users and more than 500 million WhatsApp users.
As part of its ruling, the CCI has imposed a substantial fine of $24.5 million on Meta and enforced a five-year ban on its data-sharing practice.
For Indian brands that have relied on WhatsApp interactions to target ads on Facebook and Instagram, the new regulations mean that such data will no longer be accessible.
In court documents, Meta acknowledged that the ban might necessitate pausing or rolling back some features, although it has not provided details about potential financial losses.
Meta’s public defence centers on the assertion that its 2021 privacy policy did not expand data collection or sharing unfairly, stating the updates were only intended to clarify optional business features, the report added.
However, the CCI argues that the policy effectively forced users into compliance by threatening loss of access to WhatsApp if they did not agree.
In its appeal, Meta has questioned the CCI’s technical expertise, claiming the regulator should have sought its input before issuing the decision. The stakes are high for the tech giant, which reported advertising revenue of $351 million in India for the fiscal year 2023–24, marking its strongest performance in several years.
The Indian appeals tribunal is expected to hear Meta’s challenge shortly. While the legal battle could drag on for months, there is a possibility the tribunal might grant an interim reprieve by suspending the CCI’s order until a final decision is reached.
This controversy echoes similar challenges Meta faces worldwide. Back in 2021, WhatsApp clashed with European regulators over transparency in its policy updates, leading to clarifications for EU users. In contrast, India has taken an even firmer stance, adding to Meta’s global challenges surrounding data privacy and competition laws.