Meta is facing challenges in India due to a decision by the Competition Commission of India (CCI). The CCI has prohibited WhatsApp from sharing user data with Meta for advertising purposes, which according to the competition regulator is a misuse of its dominant position to compel users into accepting a contentious 2021 privacy policy. The impact of this decision could mean Meta may need to halt or alter certain features in India.
CCI has imposed a $24.5 million fine on Meta and enforced a five-year ban on the data-sharing practice. This data sharing ban is particularly crucial as India represents Meta's largest market, boasting over 350 million Facebook users and more than 500 million WhatsApp users.
What this ban means for Meta
Meta’s concern pertains to the fact that this ban might hinder its ability to deliver personalised ads on Facebook and Instagram, a vital component of its business model. For instance, data from WhatsApp interactions used by Indian brands to target ads on Facebook or Instagram will no longer be accessible.
In court documents, Meta indicated that the ban could necessitate pausing or rolling back some features, potentially affecting its profitability in India.
However, the company has not disclosed specific financial losses that might result from this decision.
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