A press release issued by CCI said that it has issued cease-and-desist directions to Meta and WhatsApp and has also asked it to implement certain behavioural remedies.

"The Commission also issued cease-and-desist directions and also directed Meta and WhatsApp to implement certain behavioural-remedies within a defined timeline," the press release stated.

In January 2021, WhatsApp had informed users about updates to its terms of service and privacy policy, effective from February 8, 2021. The notification stated that users must accept the new terms to continue using the platform. Unlike the previous privacy policy from August 25, 2016, which allowed users to opt out of data sharing with Facebook, the updated policy made data sharing with Meta mandatory.

Users were required to accept these terms, including the expanded scope of data collection and sharing to maintain access to WhatsApp.

The CCI received information regarding the WhatsApp's violative policy and launched an investigation.

It concluded that Meta Group, through WhatsApp, was in a dominant position in the market for messaging apps through smartphones in India and in a leading position in online display advertising in India.

The CCI found that the 2021 WhatsApp policy update was on a ‘take- it-or-leave-it’ basis thereby constituting an imposition of unfair condition under the Competition Act, 2002.

According to the commission, the policy compels all users to accept expanded data collection terms and sharing of data within the Meta Group without an option to opt out of it.

"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," the order said.

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