Earlier this week, Meta announced the phased global rollout of WhatsApp's username feature, including in India. The feature allows users to reserve a unique username and eventually communicate with others without revealing their phone numbers. However, Indian authorities have expressed serious concerns that the feature could make it easier for cybercriminals to operate anonymously and increase the risk of fraud.
The government's intervention comes weeks after it temporarily blocked Telegram, citing similar concerns over user anonymity. It also follows years of regulatory confrontations with Elon Musk's X regarding content removal orders. The Telegram action was reportedly driven in part by the same concerns that have now been raised over WhatsApp's planned feature.
The July 1 government letter gave WhatsApp three days to submit its response and instructed the company not to proceed with the rollout until discussions with officials are concluded. India remains WhatsApp's largest market, with more than 500 million users, making the dispute a significant test of the company's ability to balance regulatory compliance with growing concerns over government oversight of social media platforms.
The heightened scrutiny comes only a week after Meta appointed CRED founder Kunal Shah as WhatsApp's global head, a rare leadership selection from an emerging market that highlighted India's growing importance in the platform's payments and business messaging strategy.
A WhatsApp spokesperson stated that the username feature is not yet live and will be introduced gradually later this year. The company clarified that users will still be required to register with a phone number and that anyone wishing to send a message must know the recipient's exact username.
The spokesperson also said WhatsApp has incorporated multiple layers of protection against scams into the feature. These safeguards include limits on the number of new people an account can contact and restrictions on repeated attempts to guess another user's username.
The government letter, addressed to WhatsApp's Chief Compliance Officer in India, stated that the proposed feature could significantly increase online fraud, phishing attacks, and impersonation by enabling malicious actors to contact potential victims without revealing their phone numbers.
Authorities have previously raised similar objections against Telegram. A June report prepared by the Ministry of Home Affairs and reviewed by Reuters identified the platform's alleged use in cyber fraud and warned that phone number-hiding tools make it more difficult for law enforcement agencies to identify users involved in illegal activities. Telegram subsequently lost a legal challenge last month against the temporary ban imposed on the platform.
The government also referred to India's Information Technology law, warning that digital platforms can lose their legal protection from liability for user-generated content if they fail to comply with the government's due diligence requirements.
Digital rights organizations have questioned the legal basis of the government's directive. The Internet Freedom Foundation argued that no provision under existing law authorizes the government to approve or block a platform feature before its official release. The organization described the directive as an attempt by the government to determine what technology companies are permitted to develop and launch.
The latest standoff underscores the growing conflict between India's expanding regulatory oversight of global technology platforms and the industry's efforts to introduce new privacy-focused features. With India serving as WhatsApp's largest user base, the outcome of the consultations could shape the future of digital privacy, online safety, and platform regulation in one of the world's biggest technology markets.
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