Indian parliamentary panel threatens to revoke Meta's safe harbor immunity over Modi post restriction

Tensions are escalating between Meta Platforms and Indian regulators after the company faced two major controversies in quick succession.

The Dispute Over PM Modi's Post

Meta briefly restricted a Facebook post by Prime Minister Narendra Modi addressing students during the Gen Z protests in July. The company later said the restriction was due to an "error," though the post initially indicated the content was blocked due to a "legal request."

This incident came just days after regulators summoned Meta over concerns about child-abuse content.

Parliamentary Panel Demands Apology

An Indian parliamentary panel on Wednesday demanded an apology from Mark Zuckerberg within three days for restricting Modi's post. If the demand is not met, the panel recommends revoking Meta's safe harbor immunity in the country, which would make Meta liable for user-generated content on its platform.

Nishikant Dubey, chair of the parliamentary panel on communications and information technology, told ANI that "Zuckerberg must apologize within three days" for deleting Modi's video. Dubey accused the platform of misusing safe harbor protection and warned that if immunity is revoked, "there could be a nationwide flood" of formal police complaints against Meta.

Meta's Response

Joel Kaplan, Meta's chief global affairs officer, met with India's Information Technology Minister Ashwini Vaishnaw on Wednesday. In a press statement, Meta said Kaplan "apologized" to the minister "for the error restricting PM Modi's post."

However, local media reports the same day, quoting government sources, claimed that it was Zuckerberg himself who apologized for the presence of child abuse content, deepfake material, and operational errors on the platform. Meta did not comment on the authenticity of these claims in its official statement to CNBC.

Implications for Meta's Business in India

India is a key market for Meta, hosting the largest user bases for WhatsApp, Instagram, and Facebook. Legal experts told CNBC that it would become almost impossible for Meta to operate in the country if safe harbor protection is withdrawn. However, they noted that India would need to amend its broader legal framework to remove these rights.

Broader Regulatory Scrutiny

During the Gen Z protests in India last month, Instagram became a popular platform for public discourse, and Modi began creating reels to appeal to young protesters. This growing influence has exposed Meta to intense government scrutiny over content moderation lapses and user privacy concerns.

The Indian government last month issued a stern warning to Instagram to remove child abuse ads, following a warning to WhatsApp over the rollout of a username feature.

Meta's global team will remain in India to conduct "three to four" additional meetings with the ministry.