Meta may have to roll back some features after CCI’s antitrust directive: Report

Meta may “roll back or pause” some features in India because of an antitrust directive that bans its messaging service WhatsApp from sharing user data with Meta for advertising purposes, according to a report by news agency Reuters.

The directive, which came in November last year was by the Competition Commission of India (CCI) which found the social media giant abused its dominance by coercing WhatsApp users into accepting a 2021 privacy policy.

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The policy allegedly expands user data collection and sharing, which gives Meta an unfair advantage over its rivals. Users also don’t have a choice if they wanted to continue using the messaging service.

WhatsApp also publicly says it shares a user’s phone number, transaction data, how they interact with businesses and mobile device information with Meta.

As a result, the CCI imposed a $24.5 million fine as well as a five-year ban on this data sharing practice in India.

India is also the biggest market for Meta, with more than 350 million Facebook users and over 500 million WhatsApp users.

The company is now concerned this will put a roadblock to its ability to give users personalized ads on Facebook and Instagram, according to the report.

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For example, an Indian fashion business won’t be able to personalize ads on Facebook or Instagram based on their interaction with a WhatsApp user regarding a specific clothing line, the report quoted Meta’s nearly 2,000 page court filing as saying.

“Under its widest interpretation, implementing the remedy will likely require Meta to roll back or pause several features and products,” it said. “It impacts Meta’s and WhatsApp’s ability to remain commercially viable.”

Meta also argued that the CCI should have consulted with it before passing directives to change company behaviour as “the Commission does not have the necessary technical expertise and knowledge to understand the ramifications of the remedies,” according to the report.

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Meta’s plea will be heard by the Indian appeals tribunal on Thursday, January 16, 2025.