The competition watchdog in India ordered the messaging app WhatsApp to cease sharing user data with other Meta units for advertising purposes for five years, imposing an antitrust fine of $25.4 million for violations associated with the contentious WhatsApp privacy policy released in 2021.

The Competition Commission of India, initiating its probe into the practices of Meta-owned WhatsApp back in 2021 found that the "take-it-or-leave-it" privacy update constituted an abuse of Meta's dominant position by forcing users to accept expanded data collection without an opt-out option.

WhatsApp's 2021 privacy policy update forced all users to agree that their data will be transferred to Meta companies so as not to stop using the messaging service, thus erasing an option that had been available since 2016, to opt out. This meant that Meta group companies expanded the reach of data collection and processing.

The watchdog found that Meta was dominant in two key markets: so-called "over-the-top" messaging apps via smartphones in India, and online display advertising.
It held that WhatsApp's forced data-sharing led to entry barriers for Meta's competitors and even bar on market access in the display advertising market.
The CCI not only imposed a pecuniary fine on the company but also ordered far-reaching modifications to WhatsApp's India data policies.

The messaging platform must offer users detailed information on what data is shared with Meta companies and for what purpose. Prominent opt-out options should also be available to users through in-app notifications and settings menus, applicable both to new and existing users who had accepted the 2021 update.

The ruling becomes the latest regulatory challenge for Meta in India, where WhatsApp boasts over 450 million monthly active users.