Meta said it may have to “backdate or suspend” certain features of its WhatsApp service in India, used by 500 million people, as a result of November's antitrust ruling.
In a court filing seen by Reuters, the tech giant issued the warning after Order banning its WhatsApp messaging service from sharing user data with Meta For advertising purposes.
Meta is seeking to quash a Competition Commission of India (CCI) ruling that found the company abused its dominant position and “forced” WhatsApp users to accept a 2021 privacy policy that it said expanded the scope of user data collection and sharing, making it Competitors who have an unfair advantage in the competition.
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The CCI has fined India $24.5 million and imposed a five-year ban on its data sharing practices.
Meta has publicly defended its policy changes and said it disagreed with the CCI's order, but its appeal filing took a critical stance on the regulator's operations and detailed how uneasy the U.S. company was with the CCI's decision.
The company is concerned that a ban on WhatsApp sharing user data with Meta will limit its ability to serve personalized ads to users on Facebook and Instagram, according to a review of nearly 2,000 pages of documents filed with an Indian appeals court on Jan. 3.
WhatsApp has publicly stated that it shares users' phone numbers, transaction data, how they interact with businesses, and mobile device information with Meta.
Detailing the impact of the ruling for the first time in a filing, Meta said the data-sharing ban could mean Indian fashion companies will not be able to personalize ads on Facebook or Instagram based on interactions with WhatsApp users about specific clothing lines.
“Under the broadest interpretation, implementing remediation measures may require Meta to roll back or suspend certain features and products,” it said.
“This impacts Meta and WhatsApp's ability to remain commercially viable,” the company added, without quantifying any specific business impact in monetary terms.
Facebook India Online Services, Facebook's registered entity selling ad inventory in India, reported revenue of $351 million in 2023-24, the highest in at least five years.
India's appeals court will hear Mehta's plea on Thursday. Although the case may last for weeks or months, the tribunal can stay the CCI directions during this period.
Meta and CCI did not respond to inquiries from Reuters.
No “opt-out” feature
Antitrust concerns in India have added to Meta's global woes. In 2021, WhatsApp was accused of violating EU law by failing to clarify its policy changes in plain and understandable language. It later agreed to explain the changes to EU users.
The Indian case began in 2021 when WhatsApp's privacy policy changes came under criticism. Meta told CCI that the changes are only intended to provide information about how the optional business messaging feature works and do not expand its data collection and sharing capabilities.
But the CCI disagrees.
The ruling in November said WhatsApp's policies forced users to accept or risk losing the service and that there was no opt-out feature. The regulator has ordered WhatsApp to now allow users to decide whether they want WhatsApp to share data with Meta.
Meta has also taken a key stance against the CCI and its operations in its Indian court challenge, arguing that the regulator should have consulted Meta and WhatsApp before issuing directives to change the company's conduct.
“The committee does not have the necessary technical expertise and knowledge to understand the consequences of the remediation,” Mehta said.
- Reuters Additional editing by Jim Pollard
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