Meta, the parent company of giants like Facebook, WhatsApp and Instagram was fined Rs 213.14 crore by the Competition Commission of India (CCI) on Monday. The penalty has been imposed on Meta for abusing its dominant position in the messaging market. CCI said in an order that Meta collected user data, and shared it with other Meta companies which is against the competition law. The order has directed Meta and WhatsApp to implement behavioural remedies with a defined timeline. The companies have also been served a cease and desist order.
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In 2021, WhatsApp alerted its users that from February 8, users were required to accept the terms which said that their data would be shared with the Meta companies. This was made mandatory by WhatsApp and Meta. However, in 2016, users were given the option to choose whether or not they wanted to share their data.
CCI said, "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."
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Further, CCI noted that the sharing of data between the Meta companies creates an entry barrier for rivals in the display advertisement market. A remedial measure suggested by CCI is that Meta should stop sharing the data between its companies for advertising purposes for the next five years.
The move to make users accept mandatory data collection and sharing amongst Meta companies has not been taken lightly by the sector regulator. Meta holds the largest market share in the messaging market in India, and many countries with leading platforms like WhatsApp, Instagram, and Facebook. The data sharing amongst these companies would mean that Meta would have an edge no other company would be able to make.
