India’s competition watchdog Competition Commission of India (CCI) has imposed a $25.4m (Rs 2.13bn) fine on Meta for “abusing its dominant position”.

The watchdog directed WhatsApp to halt sharing user data with other Meta-owned applications for non-service purposes for five years, Reuters reports.

The order comes after a probe into the implementation of WhatsApp’s 2021 privacy policy, which permitted data sharing with other Meta companies such as Facebook.

The Commission has determined that WhatsApp’s 2021 policy update, implemented on a “take it-or-leave it” basis, imposes unfair conditions under the Act.

This update requires all users to accept expanded data collection and sharing within the Meta Group without the choice to opt-out.

The commission added: “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.”

“Sharing of user data collected on WhatsApp with other Meta companies… for purposes other than for providing WhatsApp service shall not be made a condition for users to access WhatsApp Service in India,” the watchdog added.

Meta has announced plans to challenge the decision, expressing disagreement with the watchdog’s findings, Reuters reports. 

The ruling comes as India advances regulatory efforts to address tech monopolies, including discussions on a “Digital Competition Bill” that would align with EU-like antitrust laws.

Major tech companies, including Meta, Apple, and Google, face increasing scrutiny under this evolving regulatory landscape. 

The US-India Business Council raised concerns about the proposed law’s potential impact on business operations.