The CCI’s Order, Explained
From the 21-page investigation order by the CCI [PDF], it can be ascertained that the primary reason for the investigation is the policy’s “take-it-or-leave-it” nature. The CCI notes that:
The Indian watchdog further mentioned that there is a lack of transparency in WhatsApp’s new privacy policy.
The CCI acknowledged WhatsApp’s large userbase in India. It further noted that users who wish to port to other alternatives will lose their historical data. In addition, the process of porting to other apps is a “cumbersome and time-consuming process.”
The CCI accused WhatsApp that due to the privileged position it holds in the Indian market, the protection of individual data is being compromised.
The order also states that the 2021 WhatsApp privacy policy allows businesses to give communication access and management to third-party service providers like Facebook. The catch is that Facebook may provide these services only if the concerned business allows Facebook to process the data collected by it, the CCI observed.
WhatsApp and Facebook have previously been asked to file a response regarding its new policy, way back on January 19, 2021. Facebook’s response was to contest that Facebook and WhatsApp are different legal entities and, as such, the CCI must redirect their questions to WhatsApp and not Facebook.
The CCI, in its order, criticized the response for not only being “evasive,” but “in clear non-compliance” with the Commission’s order.
A Long Drawn-Out Legal Battle
Since WhatsApp announced its 2021 privacy policy update, it has been in hot water in India. Numerous cases have been filed against the company, with users switching to alternatives such as Signal.
The Government of India has alleged that the new privacy updates are in clear violation of the law and therefore should be repealed. In a hearing in February, the Chief Justice of India clearly stated that people’s privacy was of utmost importance to the court.
Naturally, WhatsApp treads on a rocky road and it’s highly likely that it may have to take back its privacy policy update altogether. At least in India.
