An Indian tribunal temporarily suspended a five-year data sharing ban between WhatsApp and its owner, Meta Platforms, a major relief for the U.S. giant, which had warned its advertising business would be affected.
TakeAway Points:
- An Indian panel temporarily delayed a five-year data sharing prohibition between WhatsApp and its owner, Meta Platforms, a huge relief for the U.S. company, which had warned its advertising revenue would be harmed.
- The European Consumer Organisation (BEUC) called on regulators to take action against the U.S. tech giant, saying Thursday that Meta Platforms’ updated no-ads subscription service may still violate EU consumer and privacy laws in addition to antitrust regulations.
India tribunal suspends data sharing ban
Meta had challenged the Competition Commission of India’s (CCI) directive issued in November that imposed a ban on data sharing between WhatsApp and other Meta entities for advertising purposes, warning it may have to roll back some features. Meta also criticized the CCI for not having the “technical expertise” to understand the ramifications of its order.
On Thursday, India’s National Company Law Appellate Tribunal ordered a suspension of the data sharing ban while it continues to hear Meta’s challenge to the antitrust ruling.
The ban “may lead to a collapse” of WhatsApp’s business model, the tribunal noted.
India is the biggest market for Meta, where it has more than 350 million Facebook users and over 500 million people using WhatsApp.
Meta earlier told the appeals tribunal that it may have to “roll back or pause” some features, such as those that would allow an Indian fashion business, for example, to personalize ads on Facebook or Instagram based on their interaction with a WhatsApp user.
Facebook’s registered entity engaged in selling advertising in India—Facebook India Online Services—reported revenue of $351 million in 2023–24, the highest in at least five years.
A Meta spokesperson said it welcomed the ruling and “will evaluate next steps.” The CCI did not immediately respond to a request for comment on the ruling, although the watchdog can challenge the decision in the Supreme Court if it wants to.
In 2021, WhatsApp was accused of violating European Union laws by failing to clarify changes to its policy in plain and intelligible language. It later agreed to explain the changes to EU users.
The Indian case started in 2021 amid criticism of WhatsApp’s privacy policy changes. The CCI’s ruling in November found WhatsApp’s policy pushed users to accept the change or risk losing access to the service.
Meta has argued the changes were only to provide information about how optional business messaging features work and did not expand its data collection and sharing ability.
The watchdog, however, ordered in November that WhatsApp must allow users to decide whether they want the messaging service to share data with Meta or not.
Meta’s revised paid ad-free service may breach EU privacy laws
Meta Platforms’ revised no-ads subscription service may still breach EU consumer and privacy laws in addition to antitrust rules, the European Consumer Organisation (BEUC) said on Thursday as it urged regulators to act against the U.S. tech giant.
Meta, which rolled out the fee-based service for Facebook and Instagram in 2023, subsequently offered European users the option to receive less personalised ads and a 40% cut in the fees last year.
BEUC, which complained about the fee-based service to consumer protection authorities in 2023, said the changes made last year were cosmetic.
“In our view, the tech giant fails to address the fundamental issue that Facebook and Instagram users are not being presented with a fair choice and is making a weak bid to argue it is complying with EU law while still pushing users towards its behavioural advertising system,” BEUC Director General Agustin Reyna said.
“It is important for consumer and data protection authorities and the European Commission to quickly investigate Meta’s latest policy and, if needed, take immediate and effective measures to protect consumers,” he said.
A Meta spokesperson disagreed with BEUC’s conclusions, saying November’s changes meet EU regulator demands and go beyond what is required by EU law.
BEUC alleges that Meta’s misleading practices and unclear terms steer users towards its preferred option.
The consumer group also said it is not possible for users to freely consent to their data being processed and that Meta does not minimise the data it collects from users.
BEUC also accused Meta of degrading the service to users who do not agree to the use of their personal data.
EU antitrust regulators charged Meta in July last year for breaching the Digital Markets Act, saying its paid ad-free service constituted a binary choice for users.
