India Probes WhatsApp's Past Data Sharing
The Indian government is reportedly intensifying scrutiny of Meta's 2021 policy that allowed WhatsApp metadata to be used for advertising purposes. This could lead to a potential crackdown, pushing some developers to consider decentralized messaging alternatives.
The probe centers on WhatsApp's 2021 policy update that made data sharing with parent company Meta mandatory for its over 500 million users in India. Unlike in Europe, where GDPR provided an opt-out, Indian users faced a "take it or leave it" choice, prompting a suo motu investigation by the Competition Commission of India (CCI) for potential abuse of dominance. In November 2024, the CCI concluded its investigation, finding that the policy constituted an abuse of WhatsApp's dominant market position. The regulator imposed a ₹213.14 crore (approx. $25.4 million) penalty on Meta and ordered it to cease forcing users into data-sharing agreements. The CCI's order also included a five-year ban on WhatsApp sharing user data with other Meta-owned platforms for advertising purposes. The commission argued that this data sharing created unfair entry barriers for competitors in the online display advertising market. Meta and WhatsApp challenged the CCI's decision, leading to a series of legal battles. The case has escalated to India's Supreme Court, which has sharply criticized Meta's practices. During hearings, the court questioned the meaningfulness of user consent on a platform with such a dominant market position and described the mandatory data sharing as a "decent way of committing theft of private information". In a significant development in February 2026, WhatsApp informed the Supreme Court that it would comply with the CCI's directive to provide users with clear and voluntary choices regarding data sharing with Meta. The company has stated it will implement the necessary changes by March 16, 2026. Despite agreeing to implement user choice mechanisms, Meta continues to legally challenge the CCI's "abuse of dominance" finding and the monetary penalty. The Supreme Court is still examining the core issue of whether the company leveraged its market power unfairly. The legal battle has also prompted broader discussions about data privacy and the regulation of major technology firms in India. The Supreme Court has widened the scope of the proceedings to include India's IT ministry, signaling a deeper examination of how user data is monetized.