The Ministry of Electronics and Information Technology questioned Meta's legal intermediary status due to its use of paid advertisements and content algorithms on Facebook and Instagram.
A top ministry official stated that charging for content removes platform neutrality and disqualifies the company from safe-harbour immunity under Section 79 of the IT Act.
The scrutiny follows Meta's agreement to report child sexual abuse material directly to the Indian Cybercrime Coordination Centre and an NCPCR hearing with Meta India head Arun Srinivas.