open_in_newOriginal article
The challenge of policing digital giants

The challenge of policing digital giants

  • 21.03.2025 14:09
  • thehindu.com
  • Keywords: Competition Law, Data Privacy

The Competition Commission of India imposed restrictions on Meta to prevent data sharing between WhatsApp and other platforms. Global regulators are increasingly scrutinizing tech giants like Meta and Google for anti-competitive practices and data misuse. India's competition laws need updates to address data-driven monopolies and ensure fair digital market competition.

Meta ServicesMeta NewsMETAsentiment_dissatisfied

Estimated market influence

Meta

Meta

Negativesentiment_dissatisfied
Analyst rating: Strong buy

The CCI found that Meta's WhatsApp subsidiary abused its dominant position by forcing users to consent to expanded data-sharing, which was seen as a strategy to strengthen market power and harm competition.

Google

Negativesentiment_dissatisfied
Analyst rating: N/A

Google was fined ₹1,337.76 crore for abusing its dominant position in several markets, including Android app pre-installation.

Context

Analysis of Business Insights and Market Implications

Key Facts and Data Points

  • Meta Case in India:

    • CCI banned Meta (owner of WhatsApp) from sharing user data with Facebook and Instagram for five years.
    • Penalty imposed on Meta was reduced by NCLAT after Meta deposited 50% of the penalty.
    • WhatsApp's 2021 privacy policy update was deemed an abuse of dominant position in OTT messaging and online display advertising markets.

  • Google Case:

    • Google fined ₹1,337.76 crore for abusing dominance across multiple markets in India (e.g., Android app pre-installation).
    • Penalty upheld by NCLAT in 2023.

  • Global Regulatory Actions:

    • Meta faces antitrust litigation in the U.S. over Instagram and WhatsApp acquisitions.
    • Google fined over €8 billion in EU for anti-competitive practices.
    • Australia and Europe are also addressing digital platform dominance through regulatory measures.

Market Trends and Business Impact

  • Data as a Competitive Asset:

    • Data is the new oil, with limitless utility in digital markets.
    • Tech giants leverage vast data pools to enhance algorithms, advertising, and user lock-in.

  • Dominance in Digital Markets:

    • Meta and Google dominate key markets (advertising, e-commerce, smartphone services).
    • Their dominance creates entry barriers for competitors through data-driven network effects.

Competitive Dynamics

  • Anti-competitive Practices:

    • Mandated app pre-installation on Android devices by Google.
    • Forced consent for data sharing by WhatsApp, strengthening Meta's market power.

  • Regulatory Push:

    • Global regulators are targeting monopolistic practices in digital markets.
    • Cases like AT&T and Microsoft show historical parallels in addressing market dominance.

Strategic Considerations

  • India’s Competition Law:

    • Current framework lacks provisions to address data-centric monopolies.
    • Need to redefine "market power" and introduce "data monopolization" as a parameter for dominance assessment.

  • Regulatory Harmonization:

    • India can learn from EU's integration of competition law with GDPR and DMA.
    • Coordination between CCI and Data Protection Board is crucial for effective regulation.

Long-term Effects and Regulatory Implications

  • Innovation and Competition:

    • Stronger regulatory frameworks are needed to balance innovation and fair competition.
    • Interoperability and data-sharing mandates can level the playing field for smaller competitors.

  • Global vs. Local Regulation:

    • Jurisdiction-specific challenges highlight the need for harmonized international approaches.
    • Tech giants must comply with diverse regulatory requirements across markets.

Conclusion

The Meta and Google cases underscore the urgent need for forward-looking competition laws to address data exploitation and anti-competitive practices in digital markets. India’s experience highlights the broader challenge of regulating tech monopolies while fostering inclusive growth in the digital economy.