The Government of India has expressed concerns over Meta Platforms Inc. introducing usernames on its messaging platform, WhatsApp, citing a potential increase in cybercrime. Despite the backlash, Meta defended its decision, stating the feature is designed to facilitate connections without the need to disclose phone numbers. The company emphasized that the rollout is not currently live and is scheduled to proceed "slowly later this year."

WhatsApp introduced the username feature on Monday, describing it as a "major privacy feature." On Thursday, a Meta Platforms spokesperson detailed that the implementation will include several anti-scam protections. These measures encompass phone number verification, limits on contacting new users, safeguards against username guessing, and systems designed to detect and remove impersonation or abusive activity.

The Indian government raised its objections on Wednesday, suggesting that the new functionality could escalate online fraud, phishing, and impersonation attacks. In response, authorities have issued a three-day ultimatum to the company, demanding a detailed explanation of the feature or facing possible action under the country's IT regulations. The government has also requested that Meta halt the rollout until these concerns are addressed.

This regulatory scrutiny follows recent developments involving Meta's investments and leadership changes in the region. The company recently invested $900 million in Indian fintech startup CRED, and CRED founder Kunal Shah is reportedly set to lead WhatsApp globally, a move intended to bolster Meta's digital payments strategy.

Broader AI and Privacy Context

The dispute over WhatsApp usernames occurs alongside increased scrutiny of Meta's artificial intelligence initiatives. Earlier this year, the company patented an AI system capable of keeping user profiles active after death by generating responses and mimicking interactions for dormant or deceased users. While Meta has stated it has no current plans to deploy this technology, the patent has intensified debates regarding digital legacy and platform engagement.

Additionally, Meta paused its internal AI training program, the Model Capability Initiative (MCI), last month following concerns that sensitive employee data may have been widely accessible. The program, which aimed to improve AI models, collected data on U.S. employees' interactions with company systems, including mouse movements, clicks, and keystrokes.

Wells Fargo analyst Ken Gawrelski has maintained an Overweight rating on Meta Platforms, raising the price target to $767 from the previous $765. The adjustment reflects a revised outlook on the stock's valuation potential.

Rating and Price Action

The research note highlights the firm's continued confidence in Meta Platforms' performance. The new price target of $767 represents a marginal increase from the prior target of $765.