Articles for Opinion & Analysis

WhatsApp's Policy Update A Move Towards Transparency on Data Sharing With Businesses

Changes such as storing of undelivered messages and media files on its servers may be a concern for users, although these will be stored in encrypted form. The major takeaway is that WhatsApp is letting users know about how it shares data with businesses that use WhatsApp and its parent company Facebook. So in terms of user rights, we are better informed about WhatsApp’s ongoing practices. While this is a global update, there are some items which differ for the EU because the privacy law there is significantly different. Interestingly, users have no option but to accept the Privacy Policy as it is, or stop using the app altogether. Most global privacy laws require companies to take staggered consent based on the type of data they are collecting. Take the example of cookies, this Privacy Policies does not give you the option of disallowing cookies being placed on your device - something which you must have seen on many websites. This is a clear confirmation that data about you that is collected on Facebook, Instagram and WhatsApp is fast becoming one dataset. This Privacy Policy is a good insight into how WhatsApp will operate as we see it expand further into payments, e-commerce, and even insurance going forward. We find repeated mention of user data being shared for marketing and survey purposes, over and above the many reminders that Facebook companies also have access to your information. As WhatsApp’s operations grow, all of these interlinkages will become more relevant and data from one type of service will feed into another, as we have already been noticing. This policy will also have to be re-looked after the Personal Data Protection Bill is implemented, which is aligned to global regulations in many respects.

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Sameer Jain Shares his Take on WhatsApp's Apparent Take it or Leave it Approach With Its Privacy Policy Update

WhatsApp has been the most chosen messaging platform in India, largely for two reasons, first – it’s end-to-end encryption model, and second - it’s a free app with no advertisements. But, the company’s recent decision to share the users information and data with their parent company Facebook and other third-parties can be seen in outright conflict with their earlier policy stand that ‘Respect for your privacy is coded into our DNA’. They fail to understand, that why would any user consent to share his chat and other critical information with any third party, to his detriment. It has become even more alarming, since now the platform has introduced an in-app payment option as well, which means giving our banking and financial information to WhatsApp, with a rider that it can also be shared with third parties. Is this in contravention of any of the global consumer privacy and data policy regulations? Triggering from the 2018 Cambridge Analytica episode to Facebook’s recent Privacy Tracking Lawsuit in the United Sates, it can be deduced that the company has used the user data towards unauthorized and shady activities. In this era of information age, Facebook owns four of the most downloaded apps of the decade, i.e. – Facebook’s own app, Messenger, WhatsApp and Instagram. Any steps towards compromising with the user data (of which, recent WhatsApp privacy policy update is a leading example) will lead to Facebook abusing it’s dominant position. Very recently, an anti-trust case has been opened up against Facebook for abusing its dominance in the digital marketplace and engaging in anti-competitive behavior. Further, an Indian Parliamentary panel has also been set up since there were complaints of political bias, content regulation and data safety over it’s platform, to which Facebook is yet to answer. Hence, it’s not only the recent WhatsApp update that’s worrisome, but Facebook’s history with user’s privacy. . In June of 2020, Apple released their new privacy labels rules, through which, developers were required to disclose what all kinds of data they were collecting through any app. Not so surprising, WhatsApp and Facebook climbed to top of the list collecting most information, while apps like Signal and iMessage collected least. On top of it, WhatsApp recent decision to give the users one-month ultimatum to either accept their new policy terms or quit the platform has set the alarm bell ringing. Hence, it can be presumed if WhatsApp doesn’t amend their policy update soon, people will be forced to move to other more secured platforms.

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Jaideep Ghosh, Chief Operating Officer at Shardul Amarchand Mangaldas Shares a Quick Byte on Stimulus Package Announced by Finance Minister as a Part of Atmanirbhar Bharat 3.0

“The announcements, when viewed in a holistic manner, are clearly focused on creating short term employment and encouraging long term infrastructure and manufacturing. These will boost both the formal and informal sectors. While the stressed sectors benefit from credit schemes, businesses that rely on close human interactions, such as travel & hospitality, are likely to remain depressed till Covid19 situation improves.”

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Sajai Singh, Partner at J Sagar Associates Shares a Quick Byte on Digital News Portals, Netflix, Amazon Prime, Other OTTs Now Under I&B Ministry

The Ministry of Information and Broadcasting (Ministry of I&B) is a ministerial-level agency of the Government of India responsible for the formulation and administration of rules, regulations and laws in the areas of information, broadcasting, the press and the Cinema of India. Generally, Press and Films enjoy the same constitutional freedom related to expression, with Article 19(1) of the Constitution of India guaranteeing freedom of speech and expression. Such a right is not absolute and has certain limitations, including matters that are against foreign relations, public policy, integrity and sovereignty of the State, decency and morality, public order, etc., as mentioned in the Article 19(2). COVID-19 has come at a time where digitisation was rising in India and the common man was getting greater access to affordable internet. In the last 8 months, OTT or digital media and entertainment platforms, have all but replaced television. Yes, digital content is not subject to censor certification applicable to films and television programs. Other than a Universal Self-Regulation Code for OCCPs, OTT platforms enjoy ample creative freedom. The Self-Regulatory Code is yet to become fully functional (August 15, 2021) and its application is based on a best-effort basis. The Ministry of I&B realised the minimal regulation and uncensored content, being freely made available on OTT platforms, to take this step. Jurisprudence on pre-censorship of films in India has historically been tested on the basis of freedom of speech and expression. The rationale being that such freedom was at the heart of any artistic expression. Censorship of films in India is undertaken by the Central Board of Film Certification (CBFC) set up under the Cinematographic Act, 1952 (Act). The Act along with the Cinematographic (Certification) Rules, 1983 and the Central Government's guidelines dated December 6, 1991, issued pursuant to Section 5B of the Act (Censorship Laws), set out the manner in which films are to be certified for exhibition in India. On the other hand, television networks, television broadcasters and related matters are governed by the Cable Television Networks (Regulation) Act, 1995 and Cable Television Networks Rules, 1994, which among other things, restrict transmission through a cable service, of any program that is not in conformity with the program code, and of any advertisement that is not in conformity with the advertising code set out in the Cable Television Networks Rules, 1994. There was debate that OTT platforms were intermediaries under the Information Technology (Intermediary Guidelines) Rules, 2011. Thus, they were required to create a due diligence framework with respect to the information being hosted or published by the intermediary. Now with this move, curated content on OTT platforms will also warrant a level of certification, censorship and care that other avenues for content consumption attract. If self-censorship under the Self-Regulatory Code is unacceptable to the Ministry of I&B, then our hope is that the Ministry of I&B will also consider the recommendations made by the expert committee, chaired by Mr. Shyam Benegal, while trying to formulating guidelines and procedure for certification of content on OTT platforms. One key differentiator of this digital medium is the lack of public exhibition of content; rather, a pull factor wherein the consumer decides what content s/he wants to consume, at what time and after paying a transaction value for the same. Thus, the impact risk may be at variance from that of motion pictures which were available in theatres for public exhibition. In any event, it is imperative that the industry is allowed to flourish and grow in a uniform, non–discriminatory and non–discretionary manner

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Mr Sudish Sharma, Executive Partner, Lakshmikumaran & Sridharan Attorneys Shares a Quick Byte on the New Labour Codes: Top 5 Changes That Will Impact Employers And Employees

“The Government is constantly making efforts towards ease of doing business and the labour codes are another step in this direction and a welcome one. The labour codes provide for fixed-term employment which will generate employment with better provisions such as payment of applicable gratuity and at same time impart flexibility to industry, introduction of concept of “Negotiating Trade Union” or “Negotiating Trade Councils which will assist the employees to voice their concerns and the industry dealing with a single trade union or trade council for negotiation which may lead to speedy resolution, making necessary changes in wage structure so as to bring uniformity as well as capping the exclusions and increasing the social security net for employees. Bearing in mind the requirements, the threshold for layoff and retrenchment provisions has been appropriately increased. The rules as well as the manner in which implementation is done, will be equally important. The codes strive to achieve a balancing act to protect the interests of both employers and employees and to encourage investments in India.”

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Anshul Mathur, Partner, Lakshmikumaran & Sridharan Attorneys shares a quick byte on the 43rd GST Council Meeting

The discussions in the 43rd GST Council meeting were focussed on borrowing by the states and extension of compensation cess beyond the year 2022 to make up for the shortfall in collections. The Finance minister candidly accepted that even after three meetings on the issue there was no consensus reached, however, she described the situation as a “difference of opinion” rather than a “dispute between centre and states”. Ruling out the possibility of borrowing by the Centre due to adverse ramifications on cost of borrowing for states and private sector, it was discussed that the states who have opted for option I and are willing to borrow under the special window facilitated by the RBI, should not be stopped by other member states just because a unanimous decision is not reached. After this third consecutive meeting on the issue, taxpayers sincerely hope that the next meeting focuses on issues which directly affect them.

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