India asks Facebook’s WhatsApp to withdraw privacy policy update
- The demand creates a new headache for WhatsApp and its US parent Facebook, which have placed big bets on the South Asian nation
- It is of ‘great concern’ that Indian users have not been given the choice to opt out of this data sharing with Facebook, says India’s tech ministry
India’s technology ministry has asked WhatsApp to withdraw changes to its privacy policy the messaging platform announced earlier this month, saying the new terms take away choice from Indian users.
The demand creates a new headache for WhatsApp and its US parent Facebook, which have placed big bets on the South Asian nation to expand their payments and other businesses.
“The proposed changes raise grave concerns regarding the implications for the choice and autonomy of Indian citizens,” the Ministry of Electronics and Information Technology wrote in an email to WhatsApp boss Will Cathcart dated January 18.
“Therefore, you are called upon to withdraw the proposed changes,” the ministry wrote in the letter seen by Reuters.
WhatsApp said in a statement it was working to address misinformation and remains available to answer any questions. “We wish to reinforce that this update does not expand our ability to share data with Facebook,” it said.
California-based Facebook invested US$5.7 billion last year in the digital unit of Indian conglomerate Reliance with a huge part of that aimed at drawing in tens of millions of traditional shop owners to use digital payments via WhatsApp.
With 400 million users in India, WhatsApp has big plans for the country’s growing digital payments space, including selling health insurance via partners.