Regulatory Challenges and Market Dominance of Meta

The Competition Commission of India (CCI) imposed a significant fine of ₹213.14 crore on Meta on November 18, 2024, due to its market dominance and imposed several behavioral remedies. A notable action included a five-year ban on sharing user data collected on WhatsApp with other Meta companies.

Appeal and Legal Proceedings

• Meta appealed to the National Company Law Appellate Tribunal (NCLAT) against CCI's order.
• NCLAT granted a stay on the ban and penalty, contingent upon Meta depositing 50% of the total penalty.

Abuse of Dominant Position

• The CCI's order found Meta's 2021 WhatsApp privacy policy update as an abuse of dominant position in the OTT messaging services and online display advertising markets in India.
• User data sharing was forced on a "take-it-or-leave-it" basis, giving Meta a competitive advantage in digital advertising.

Data and Digital Market Dominance

Data is the cornerstone of digital market dominance, akin to oil but with limitless utility as it can be reused indefinitely. Platforms like Meta use vast data collections to improve algorithms, deliver targeted advertising, and personalize experiences, reinforcing consumer dependency on their ecosystems.

Global and Historical Context

• Meta's market dominance issues are part of a broader global regulatory concern.
• Similar regulatory actions have been taken against Google, which was fined ₹1,337.76 crore by CCI in 2022 for mandating pre-installation of its apps on Android devices.
• Global cases highlight the need to update antitrust laws, illustrated by actions against Google and Meta in the U.S. and Europe.

Regulatory Measures and Law Amendments

India’s Competition Act, 2002, currently lacks explicit measures for data-centric monopolies. Amendments should incorporate data monopolization as a criterion to assess market dominance.

Recommendations for Effective Regulation

• Incorporate global best practices such as mandating interoperability and data-sharing agreements.
• The Digital Personal Data Protection Act, 2023, could complement competition law but needs mechanisms for coordination between CCI and the Data Protection Board of India.

Need for Comprehensive Regulatory Frameworks

India must adapt its regulatory frameworks to keep pace with digital economy advancements and anticipate challenges posed by tech giants. Lessons could be drawn from the EU's Digital Markets Act and GDPR integration.

Conclusion

The Meta case is a crucial juncture in India’s regulatory efforts to address data-driven monopolies, emphasizing the need for holistic and proactive competition law adaptations. Legal professionals like Shri Venkatesh, Priya Dhankhar, and Harsh Vardhan highlight the importance of forward-looking law practices to navigate these complex digital transformations.