CCI Imposes ₹213 Crore Penalty on Meta for Abusing Dominance via 2021 WhatsApp Privacy Policy
Introduction
India's Competition Commission of India (CCI) on 18th November 2024 imposed a ₹213 crore penalty on Meta for abusing its dominant position in internet-based messaging through WhatsApp and online display advertising. The CCI order is passed against abuse of dominance by the Meta and relates to WhatsApp’s 2021 Privacy Policy. The CCI considers Meta a dominant player in internet-based messaging through WhatsApp and also in online display advertising. WhatsApp's 2021 privacy policy update undermined users' ability to opt out of getting their data shared with the group's social media platform Facebook. The CCI directed WhatsApp not to share user data collected on its platform with other Meta companies or products for advertising purposes for five years.
CCI Contentions
The regulator contended that for purposes other than advertising, WhatsApp's policy should include a detailed explanation of the user data shared with other Meta group companies or products specifying the purpose. The regulator also stated that sharing user data collected on WhatsApp with other Meta companies or products for purposes other than providing WhatsApp services should not be a condition for users to access WhatsApp services in India. CCI order is significant as it upholds user consent as a key principle in the functioning of social media giants, similar to the measures taken by some other markets.
Meta’s Stance
WhatsApp parent company Meta has expressed its disagreement with the Competition Commission of India's(CCI) decision to impose a Rs 213 crore penalty on them over users' privacy concerns. Meta clarified that the 2021 update did not change the privacy of people's personal messages and was offered as a choice for users at the time. It also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update.
Meta clarified that the update was about introducing optional business features on WhatsApp and providing further transparency about how they collect data. The company stated that WhatsApp has been incredibly valuable to people and businesses, enabling organization's and government institutions to deliver citizen services through COVID and beyond and supporting small businesses, all of which further the Indian economy. Meta plans to find a path forward that allows them to continue providing the experiences that "people and businesses have come to expect" from them. The CCI issued cease-and-desist directions and directed Meta and WhatsApp to implement certain behavioral remedies within a defined timeline.
The competition watchdog noted that WhatsApp's 2021 policy update made it mandatory for users to accept the new terms, including data sharing with Meta, and removed the earlier option to opt-out, categorized as an "unfair condition" under the Competition Act. It was further noted that WhatsApp’s sharing of users’ business transaction information with Meta gave the group entities an unfair advantage over competing platforms.
CyberPeace Outlook
The 2021 policy update by WhatsApp mandated data sharing with Meta's other companies group, removing the opt-out option and compelling users to accept the terms to continue using the platform. This policy undermined user autonomy and was deemed as an abuse of Meta's dominant market position, violating Section 4(2)(a)(i) of the Competition Act, as noted by CCI.
The CCI’s ruling requires WhatsApp to offer all users in India, including those who had accepted the 2021 update, the ability to manage their data-sharing preferences through a clear and prominent opt-out option within the app. This decision underscores the importance of user choice, informed consent, and transparency in digital data policies.
By addressing the coercive nature of the policy, the CCI ruling establishes a significant legal precedent for safeguarding user privacy and promoting fair competition. It highlights the growing acknowledgement of privacy as a fundamental right and reinforces the accountability of tech giants to respect user autonomy and market fairness. The directive mandates that data sharing within the Meta ecosystem must be based on user consent, with the option to decline such sharing without losing access to essential services.
References
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Introduction
India's broadcasting sector has undergone significant changes in recent years with technological advancements such as the introduction of new platforms like Direct-to-Home (DTH), Internet Protocol television (IPTV), Over-The-Top (OTT), and integrated models. Platform changes, emerging technologies and advancements in the advertising space have all necessitated the need for new governing laws that take these developments into account.
The Union Government and concerned ministry have realised there is a pressing need to develop a robust regulatory framework for the Indian broadcasting sector in the country and consequently, a draft Broadcasting Services (Regulation) Bill, 2023, was released in November 2023 and the Union Ministry of Information and Broadcasting (MIB) had invited feedback and comments from different stakeholders. The draft Bill aims to establish a unified framework for regulating broadcasting services in the country, replacing the current Cable Television Networks (Regulation) Act, 1995 and other policy guidelines governing broadcasting.
Recently a new draft of an updated ‘Broadcasting Services (Regulation) Bill, 2024,’ was shared with selected broadcasters, associations, streaming services, and tech firms, each marked with their identifier to prevent leaks.
Key Highlights of the Updated Broadcasting Bill
As per the recent draft of the Broadcasting Services (Regulation) Bill, 2024, social media accounts could be identified as ‘Digital News Broadcasters’ and can be classified within the ambit of the regulation. Some of the major aspects of the new bill were first reported by Hindustan Times.
The new draft of the Broadcasting Services (Regulation) Bill, 2024, proposes that individuals who regularly upload videos to social media, make podcasts, or write about current affairs online could be classified as Digital News Broadcasters. This entails that YouTubers and Instagrammers who receive a share of advertising revenue or monetize their social media presence through affiliate activities will be regulated as Digital News Broadcasters. This includes channels, podcasts, and blogs that cover news and utilise Google AdSense. They must comply with a Programme Code and Advertising Code.
Online content creators who do not provide news or current affairs but provide programming and curated programs beyond a certain threshold will be treated as OTT broadcasters in case they provide content licensed or live through a website or social media platform.
The new version also introduces new obligations for intermediaries and social media intermediaries related to streaming services and digital news broadcasters, and, in contrast to the last version circulated in 2023, the latest also carries provisions targeting online advertising. In the context of streaming services, OTT broadcasting services are no longer a part of the definition of "internet broadcasting services." The definition of OTT broadcasting service has also been revised, allowing content creators who regularly upload their content to social media to be considered as OTT broadcasting services.
The new definition of an 'intermediary' includes social media intermediaries, advertisement intermediaries, internet service providers, online search engines, and online marketplaces.
The new Bill allows the government to prescribe different due diligence guidelines for social media platforms and online advertisement intermediaries and requires all intermediaries to provide appropriate information, including information pertaining to the OTT broadcasters and Digital News Broadcasters on their platform, to the central government to ensure compliance with the act. This entails the liability provisions for social media intermediaries which do not provide information “pertaining to OTT Broadcasters and Digital News Broadcasters” on its platforms for compliance. This suggests that when information is sought about a YouTube, Instagram or X/Twitter user, the platform will need to provide this information to the Indian government.
A new draft bill contains specific provisions governing ‘Online Advertising’ and to do so it creates the category of 'advertising intermediaries'. These intermediaries enable the buying or selling of advertisement space on the internet or placing advertisements on online platforms without endorsing the advertisement.
Final Words
The Indian Ministry of Information and Broadcasting (MIB) is making efforts to propose robust regulatory changes to the country's new-age broadcast sector, which would cover the specific provisions for Digital News Broadcasters, OTT Broadcasters and Intermediaries. The proposed bill defining the scope and obligation of each.
However, these changes will have significant implications for press and creative freedom. The changes in the new version of the updated bill from its previous draft expanded the applicability of the bill to a larger number of key actors, this move brought ‘content creators’ under the definition of OTT or digital news broadcasters, which raises concerns about overly rigid provisions and might face criticism from media representative perspectives.
According to recent media reports, the Broadcasting Services (Regulation) Bill, 2024 version has been withdrawn by the I&B ministry facing criticism from relevant stakeholders.
The ministry must take due consideration and feedback from concerned stakeholders and place reliance on balancing individual rights while promoting a healthy regulated landscape considering the needs of the new-age broadcasting sector.
References:
- https://www.medianama.com/2024/07/223-india-broadcast-bill-online-creators/#:~:text=Online%20content%20creators%20that%20do,or%20a%20social%20media%20platform.
- https://www.hindustantimes.com/india-news/new-draft-of-broadcasting-bill-news-influencers-may-be-classified-as-broadcasters-101721961764666.html
- https://www.hindustantimes.com/india-news/broadcasting-bill-still-in-drafting-stage-mib-tells-rs-101722058753083.html
- https://www.newslaundry.com/2024/07/29/indias-new-broadcast-bill-now-has-compliance-requirements-for-youtubers-and-instagrammers
- https://m.thewire.in/article/media/social-media-videos-text-digital-news-broadcasting-bill
- https://mib.gov.in/sites/default/files/Public%20Notice_07.12.2023.pdf
- https://news.abplive.com/news/india/centre-withdraws-draft-of-broadcasting-services-regulation-bill-1709770
Introduction
In the rapidly evolving landscape of cyber threats, a novel menace has surfaced the concept of Digital Arrest. The impostors impersonating law enforcement officers deceive the victims into believing that their bank account, SIM card, Aadhaar card, or bank card has been used unlawfully. They coerce victims into paying them money. Digital Arrest involves the virtual restraint of individuals. These suspensions can vary from restricted access to the account(s), and digital platforms, to implementing measures to prevent further digital activities or being restrained on video calling or being monitored through video calling. In the era of digitisation where the technology is growing on an exponential phase, various existing loopholes are being utilised by the wrongdoers which has given rise to this sinister trend known as “digital arrest fraud”. In this scam, the defrauder manipulates the victims, who impersonate law enforcement officials and further traps the victims into a web of deception involving threats of imminent digital restraint and coerced financial transactions.
Recognizing the Danger of Digital Arrest
A recent case involving an interactive voice response (IVR) call that targeted a victim sheds light on the complexities of the "digital arrest" cybercrime. The victim was notified by the scammers—who were pretending to be law enforcement officers—that a SIM card in her name had apparently been utilised in a criminal incident in Mumbai. The call proceeded to a video conversation with an FBI agent who falsely accused her of being involved in money laundering. The victim was forced into a web of dishonesty because she now believed she was involved in a criminal case, underscoring the psychological manipulation these hackers were using.
Recent incidents of digital arrest fraud
- Recently, a complaint was registered at the Noida Cyber Crime Police Station made by a 50-year-old victim, who was deceived of over Rs 11 lakh and exposed to "digital arrest". By using the identities of an IPS officer in the CBI and the founder of an airline that was grounded, the attackers, masquerading as law enforcement officers, falsely accused the victim of being involved in a fake money-laundering case. She was told that she had another SIM card in her name that was used for fraudulent activities in Mumbai. The complaint made by the victim asserted “Victim’s call was transferred to a person (who identified himself as a Mumbai Police officer) who conducted the initial interrogation over the call and then on Skype VC, where she stayed from 9:30 AM to around 7 in the evening. The woman ended up transferring around ₹11.11 lakh. The scammers then ended contact with her, after which she realised she had been scammed.
- Another recent case of digital arrest fraud came from Faridabad. Where a 23-year-old girl got a call from a fraudster posing as a Lucknow customs officer. The caller said that a package was being shipped to Cambodia that included cards and passports associated with the victim's Aadhaar number. The victim was forced to believe that she was a part of illegal activity, which included trafficking in humans. Under the guise of police officials, the hackers made up allegations before extorting money from the victim. After that, she was told by a man acting as a CBI official that she needed to pay five per cent of the total which was Rs 15 lakh. She said the cybercriminals instructed her not to log off Skype. In the meantime, she ended up transferring Rs 2.5 lakh to a bank account shared by cybercriminals.
Measures to protect oneself from digital arrest
Sustaining a practical and observant approach towards cybersecurity is the key to lowering the peril of being targeted and experiencing digital arrest. Following are certain best practices for ensuring the same:
- Cyber Hygiene: This includes maintaining cyber hygiene by regularly updating passwords, and software and also enabling two-factor authentications to reduce the chances of unauthorized access.
- Phishing Attempts: These can be evaded by refraining from clicking on dubious links or downloading attachments from unknown sources and also authenticating the legitimacy of emails and messages before sharing any personal information.
- Secured devices: By installing reputable antivirus and anti-malware solutions and keeping operating systems and applications up to date with the latest security protocols.
- Virtual Private Networks (VPNs): VPNs can be employed to encrypt internet connections thus enhancing privacy and security. However one must be cautious of free VPN services and OTP only for trustworthy providers.
- Monitor online services: A regular review of online accounts for any unauthorized or unlawful activities and setting up alerts for any changes to account settings or login attempts may help in the early detection of cybercrime and coping with it.
- Secure communication channels: Using secure communication techniques such as encryption can be done for the protection of sensitive information. Sharing of passwords and other information must be cautiously done especially in public forums.
- Awareness: The increasing prevalence of cybercrime known as "digital arrest" underscores the need for preventive measures and increased public awareness. Educational initiatives that draw attention to prevalent cyber threats—especially those that include law enforcement impersonation—can enable people to identify and fend off scams of this kind. The collaboration of law enforcement agencies and telecommunication companies can effectively limit the access points used by fraudsters by identifying and blocking susceptible calls.
Conclusion
The rise of Digital Arrest presents a noteworthy and innovative threat to cybersecurity by taking advantage of people's weaknesses through deceitful impersonation and coercive measures. The case in Noida is a prime example of the boldness and skill of cybercriminals who use fear and false information to trick victims into thinking they are in danger of suffering harsh legal repercussions and taking large amounts of money. In order to combat this increasing cybercrime, people need to take a proactive and watchful stance when it comes to cybersecurity. Cyber hygiene techniques, such as two-factor authentication and frequent password changes, are essential for lowering the possibility of unwanted access. Important precautions include being aware of phishing efforts, protecting devices with reliable antivirus software, and using Virtual Private Networks (VPNs) to increase privacy. Cybercriminals and fraudsters often use fear as a powerful tool to manipulate people and exploit their vulnerabilities for illicit gains in the realms of cybercrime and financial fraud. To protect themselves against the sneaky threat of Digital Arrest, netizens must traverse the constantly changing cyber threat landscape with collective knowledge, educated practices, and strong cybersecurity measures.
References:
- https://www.business-standard.com/india-news/new-cyber-crime-trend-unravelled-in-up-woman-held-under-digital-arrest-123120200485_1.html
- https://www.businessinsider.in/india/news/noida-woman-scammed-11-lakh-in-digital-arrest-scam-everything-you-need-to-know/articleshow/105727970.cms
- https://m.timesofindia.com/life-style/parenting/moments/23-year-old-faridabad-girl-on-digital-arrest-for-17-days-how-to-protect-your-children-from-cyber-crime/photostory/105442556.cms
Introduction
A new dawn in the realm of cyber security and criminal justice is on the horizon. Maharashtra's Deputy Chief Minister, Devendra Fadnavis, has recently announced the advent of the country's most sophisticated cyber lab—a bastion against the dark arts of cybercrime. This announcement, made with the gravitas befitting a statesman, was not merely a bureaucratic note; it was a clarion call to a future where technology and law converge to create a safer society.
The cyber lab, poised to be the largest and most modern of its kind, is not just a facility—it is a symbol of the state's commitment to harnessing the power of technology in the ceaseless battle against crime. Fadnavis, who also holds the state's home portfolio, underscored the significance of this initiative during a function where he also emphasised the need for the Maharashtra police to brace themselves for the enforcement of three transformative criminal laws set to take effect from the first of July 2024.
In compliance with the New Laws
These laws—the Bharatiya Nyaya Sanhita, the Bharatiya Nagarik Suraksha Sanhita, and the Bharat Sakshya Act—They are not mere statutory texts; they are the architects of a new edifice of criminal justice, designed with the mortar of modern electronic and technical evidence to buttress the conviction rates and fortify the legal system.
At the inauguration of the Evidence Management Centre (EMC) and the Evidence Dispatch Van (EDV) in Navi Mumbai, Fadnavis spoke with an air of prescience about the radical shifts these new acts will engender. The EMC, a paragon of innovation with its no-human-intervention ethos, is set to revolutionise the procedure of handling evidence, thereby amplifying the likelihood of securing convictions in an era increasingly marred by cyber frauds and hacking escapades.
Recent Trend
The Deputy Chief Minister's vision extends beyond the present, into a realm where blockchain technology becomes an ally of law enforcement, rendering evidence tampering an obsolete concern. Under the new legislative framework, expert collection of evidence is mandated for crimes with sentences exceeding seven years, a move that underscores the gravity with which digital and electronic evidence is now regarded.
The Cyber Lab
The Navi Mumbai police Commissionerate stands as the vanguard of this new legal era, being the first in the country to align with the upcoming laws. As digital transactions burgeon, so too does the evil of cybercrime. Fadnavis assures us that the cyberlaw, a veritable nexus of modernity, will bring together banks, non-banking financial companies (NBFCs), and social media platforms on a unified platform to detect and thwart crimes with alacrity.
This announcement was made in the presence of Maharashtra's Director General of Police, Rashmi Shukla, and Navi Mumbai's police commissioner, Milind Bharambe, both of whom are key figures in the conception of this project. Their attendance shows the collective resolve of Maharashtra's law enforcement to elevate its capabilities in cybercrime prevention.
Conclusion
The establishment of this cyber lab is a vivid thread woven with the intent to protect the digital integrity of its citizens. It is a testament to the state's foresight and its unwavering commitment to staying abreast of the evolving landscape of crime and technology. As we stand on the cusp of this new era, we are reminded that the fight against crime is perennial, but with such pioneering initiatives, victory is not just a possibility—it is an inevitability.
References
- https://indianexpress.com/article/cities/mumbai/navi-mumbai-cyber-lab-criminal-laws-fadnavis-9206801/
- https://www.the420.in/why-maharashtras-new-cyber-lab-could-be-a-game-changer-for-national-security/
- https://apacnewsnetwork.com/2024/03/navi-mumbai-to-host-indias-most-advanced-crime-busting-lab-boosting-conviction-rates-maharashtra-deputy-cm-fadnavis-announces/
