WhatsApp policy puts users in ‘take it or leave it’ spot: Delhi high court | India News
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NEW DELHI: The Delhi HC on Friday picked holes in WhatsApp’s new privacy policy, saying it leaves users in a “take it or leave it” situation as any choice available to customer is just a “mirage” in absence of an “opt-out” option. The court’s rap is a first for WhatsApp’s 2021 user policy.
The app’s new policy has come under the scanner over reports that it will share user data with other companies of Meta, which owns Facebook and WhatsApp, though end-to-end encryption of messages and calls will remain. It won’t delete accounts of users if they don’t update to its 2021 policy, but they won’t be able to receive incoming calls or notifications after a few weeks.
The Competition Commission of India (CCI) stepped in after WhatsApp declared its new policy. The court noted that concentration of data and its sharing with Facebook required CCI to come into the picture.
“When data concentration is seen through this prism, it does give meaning to the new adage that “data is the new oil”, and raises competition concerns because it prima facie amounts to imposition of unfair terms and conditions upon its users,” a bench of Chief Justice SC Sharma and Justice Subramonium Prasad said in a 49-page verdict Friday.
Dismissing appeals filed by Meta-owned entities to stop the CCI probe, the HC said their 2016 policy provided users the option to “opt out” of sharing user account information with Facebook within 30 days of agreeing to the updated terms of service and privacy. “The 2021 policy, however, places its users in a ‘take-it-or-leave-it’ situation, virtually forcing its users into agreement by providing a mirage of choice, and then sharing sensitive data with Facebook companies envisaged in the policy,” it said.
The HC said “opt-out” option had led CCI to conclude that the 2016 policy didn’t violate Competition Act. It saw merit in the stand of CCI that “one of the key issues with the 2021 policy is its propensity to share data of its users with Facebook Inc., the parent company of WhatsApp”.
The HC said, “WhatsApp occupies a dominant position in relevant product market and there exists a strong lock-in effect which renders its users incapable of shifting to another platform despite dissatisfaction with the product”. It said, “By and large, to ensure retention of its user base and to prevent any other disruptive technology from entering market, data is utilised by tech firms to customise their platforms so that its user base remains hooked”.
The app’s new policy has come under the scanner over reports that it will share user data with other companies of Meta, which owns Facebook and WhatsApp, though end-to-end encryption of messages and calls will remain. It won’t delete accounts of users if they don’t update to its 2021 policy, but they won’t be able to receive incoming calls or notifications after a few weeks.
The Competition Commission of India (CCI) stepped in after WhatsApp declared its new policy. The court noted that concentration of data and its sharing with Facebook required CCI to come into the picture.
“When data concentration is seen through this prism, it does give meaning to the new adage that “data is the new oil”, and raises competition concerns because it prima facie amounts to imposition of unfair terms and conditions upon its users,” a bench of Chief Justice SC Sharma and Justice Subramonium Prasad said in a 49-page verdict Friday.
Dismissing appeals filed by Meta-owned entities to stop the CCI probe, the HC said their 2016 policy provided users the option to “opt out” of sharing user account information with Facebook within 30 days of agreeing to the updated terms of service and privacy. “The 2021 policy, however, places its users in a ‘take-it-or-leave-it’ situation, virtually forcing its users into agreement by providing a mirage of choice, and then sharing sensitive data with Facebook companies envisaged in the policy,” it said.
The HC said “opt-out” option had led CCI to conclude that the 2016 policy didn’t violate Competition Act. It saw merit in the stand of CCI that “one of the key issues with the 2021 policy is its propensity to share data of its users with Facebook Inc., the parent company of WhatsApp”.
The HC said, “WhatsApp occupies a dominant position in relevant product market and there exists a strong lock-in effect which renders its users incapable of shifting to another platform despite dissatisfaction with the product”. It said, “By and large, to ensure retention of its user base and to prevent any other disruptive technology from entering market, data is utilised by tech firms to customise their platforms so that its user base remains hooked”.
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