Facebook-owner Meta may "roll back or pause" some features in India due to an order by the country's competition authority barring WhatsApp from sharing user data for advertising purposes.
As reported by Reuters, which cited a court filing by the US company, Meta is seeking to quash the Competition Commission of India's November directive which found it abusing its market dominance by forcing WhatsApp users into accepting a 2021 privacy policy, with no option to opt out.
WhatsApp in January 2021 notified users about updates to its terms of service and privacy policies.
According to the notification, users were required to accept the terms, which included an expanded scope of data collection as well as mandatory data sharing with Meta companies, to continue using WhatsApp.
Challenging the notification, the CCI imposed a fine of $24.5 million and a five-year ban on the data sharing practice in India – the biggest market for the US firm with more than 350 million Facebook and over 500 million WhatsApp users.
Meta has argued that the data sharing ban on WhatsApp will prevent users from receiving personalised ads on Facebook and Instagram.
WhatsApp agrees it shares with Meta a users' phone numbers, transaction data, and their interaction with businesses.
"Under its widest interpretation, implementing the remedy will likely require Meta to roll back or pause several features and products," Meta said in the court filing, according to Reuters.
"It impacts Meta's and WhatsApp's ability to remain commercially viable," it added.
Facebook's Indian ad unit - Facebook India Online Services - reported a revenue of $351 million in 2023-24, the highest in at least five years.
Meta's plea is likely to be heard on Thursday in India.
Meta in its challenge to the order also argued that the CCI should have consulted its before passing the directive.
"The Commission does not have the necessary technical expertise and knowledge to understand the ramifications of the remedies," the firm said.
Passing the order in November 2024, the CCI said that Meta's data sharing practices posed entry level barriers for the rivals, and thus a denial of access to them in the ads market.
CCI said Meta engaged in leveraging its position in the OTT messaging apps to protect its position in the online display advertising market.
It also ruled that WhatsApp's policy now must include a "detailed explanation" of the user data shared with other Meta companies. "This explanation should specify the purpose of data sharing, linking each type of data to its corresponding purpose."
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