WhatsApp has become an integral part of our lives. This platform, once used solely for texting, now facilitates calls and payments. A key attraction is its claim of being ‘free’, a promise touted to last forever. The recent decision by the Competition Commission of India (CCI) sheds light on this.

The CCI slapped a hefty fine of Rs 213.14 crore on Meta (WhatsApp’s parent company), alleging abuse of dominance. Meta, however, plans to appeal the decision.

Speaking to Moneycontrol a Meta representative said, “We disagree with the CCI’s decision… we are committed to finding a way forward that allows us to continue to provide people and businesses with the experience they expect from us."

The new policy implemented by WhatsApp on February 8, 2021 mandated users to share their data with Facebook (Meta) as a condition for using WhatsApp. This was optional in the previous 2016 policy. This “take it or leave it" approach compromised user consent.

In countries like India, with less stringent data protection laws, this policy made users more vulnerable. Business account chats wouldn’t be fully end-to-end encrypted. Hosting these chats on Meta’s servers increased the risk of data misuse or breaches.

While the General Data Protection Regulation (GDPR) offered some protection to European users, it lacked strict enforcement in India and other regions. This inconsistency eroded trust in WhatsApp.

Misconceptions arose that personal chats would also be shared with WhatsApp, prompting millions to consider alternatives like Signal and Telegram, boosting the latter’s popularity in India.

While WhatsApp claims to safeguard user data, it monetises it in subtle ways. The WhatsApp Business Application, used by companies to connect with customers, provides access to customer data.

Although WhatsApp doesn’t display direct advertisements, Meta utilises user data for targeted advertising on its other platforms. For instance, discussing furniture purchases on WhatsApp might lead to furniture ads on Facebook. This demonstrates how the company profits from user data.

Here’s a summary of the CCI’s decision: