'We want to be clear that the policy update does not affect the privacy of your messages with friends or family in any way,' WhatsApp said in a statement on its official webpage. AFP
'We want to be clear that the policy update does not affect the privacy of your messages with friends or family in any way,' WhatsApp said in a statement on its official webpage. AFP
'We want to be clear that the policy update does not affect the privacy of your messages with friends or family in any way,' WhatsApp said in a statement on its official webpage. AFP
'We want to be clear that the policy update does not affect the privacy of your messages with friends or family in any way,' WhatsApp said in a statement on its official webpage. AFP

WhatsApp's privacy policy explained: messaging service responds to controversy surrounding updates

'We want to be clear that the policy update does not affect the privacy of your messages with friends or family in any way,' the company said

Razmig Bedirian
Razmig Bedirian

January 12, 2021

  • English
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WhatsApp has responded to the outcry against its updated privacy policy with a statement that attempts to allay people's fears about how their data will be used.

The messaging app has been caught in the crosshair of controversy since it announced a policy update that will force users to share personal information with its parent company, Facebook. The new policy will go into effect on February 8, after which those who do not accept the updated terms will no longer be able to use the app.

The news garnered criticism as many took to social media to point out that WhatsApp – a company previously devoted to privacy and security with its encrypted messaging service – was going astray from its founding principles. Many have even started looking for alternatives to WhatsApp.

Following the update, billionaire tycoon Elon Musk encouraged his 42 million Twitter followers to "use Signal" instead. The two-word tweet prompted a surge of new users to the messaging app, causing a temporary disruption to its sign-up process.

However, WhatsApp is now trying to clear any misunderstandings about the information it can gather under its updated policy, in a bid to retain users.

“We want to be clear that the policy update does not affect the privacy of your messages with friends or family in any way,” the company said in the FAQ section of its official webpage. “Instead, this update includes changes related to messaging a business on WhatsApp, which is optional, and provides further transparency about how we collect and use data.”

Secure messaging app Signal is on the top downloads on Apple Store and Google Play platforms in several countries. AFP
Secure messaging app Signal is on the top downloads on Apple Store and Google Play platforms in several countries. AFP

The company says the app still protects and secures users’ private messages. Neither WhatsApp nor Facebook will be able to see messages or listen in on phone calls or voice messages.

“WhatsApp does not share your contacts with Facebook. WhatsApp groups remain private,” the company wrote.

“Personal messages are protected by end-to-end encryption. We will never weaken this security and we clearly label each chat so you know our commitment.”

WhatsApp said it does not keep logs of who users are messaging or calling. While many mobile carriers and operators do store this information, WhatsApp said “keeping these records for two billion users would be both a privacy and security risk and we don’t do it.”

The company also noted that it can’t see what location you share with someone through WhatsApp. Shared locations, like private messages, are protected by the app’s end-to-end encryption service, “which means no one can see your location except the people you share it with.”

As an added layer of privacy, WhatsApp said it allows users to set their messages to disappear from chats after they are sent. Users will also be able to download the data that WhatsApp saves.

However, things are different when interacting with a business account, where privacy is not ensured. WhatsApp says it wants to make the process of messaging businesses easier and better.

“We will always be clear within WhatsApp when you are communicating with any business that uses these features,” the company said. “Some large businesses need to use hosting services to manage their communication. Which is why we’re giving businesses the option to use secure hosting services from Facebook to manage WhatsApp chats with their customers, answer questions, and send helpful information like purchase receipts.”

Whether users communicate with a business via phone or WhatsApp, the platform can see what you’re saying and may use that information for its own marketing, which could include advertisements on Facebook.

“To make sure you’re informed, we clearly label conversations with businesses that are choosing to use hosting services from Facebook,” WhatsApp said.

The app is also launching new features that enable businesses to display their goods on WhatsApp with Facebook-branded commerce services like Shops.

“If you choose to interact with Shops, your shopping activity can be used to personalise your Shops experience and the ads you see on Facebook and Instagram,” WhatsApp said. “Features like this are optional and when you use them we will tell you in the app how your data is being shared with Facebook.”

The new feature, WhatsApp said, also helps users discover new businesses. Facebook ads will be enabled with buttons that allow users to message businesses using WhatsApp.

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While you're here

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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