India restricts WhatsApp sharing data with other Meta entities, imposes $25.4-million fine

India's competition watchdog directed WhatsApp to refrain from sharing user data for advertising purposes with other applications owned by Meta for a period of five years and fined the US tech giant $25.4 million on Monday over antitrust violations related to the messaging application's 2021 privacy policy.

The Competition Commission of India (CCI) launched a probe in March 2021 into WhatsApp's privacy policy, which allowed data sharing with Facebook and its units, sparking global backlash.

"Sharing of user data collected on WhatsApp with other Meta companies... for purposes other than for providing WhatsApp service shall not be made a condition for users to access WhatsApp Service in India," the CCI said.

Meta did not immediately respond to Reuters' request for comment.

Tech giants, including Apple, Google and Meta face new regulatory challenges with India's proposed EU-like antitrust law.

The Indian government is currently examining a February report from a panel established by the corporate affairs ministry. The report proposed a new "Digital Competition Bill" to complement existing antitrust laws.

The US-India Business Council, a key US lobby group has already opposed the move, fearing its business impact.