As a refresher, the new policy was announced a couple of weeks and it stated that certain data would be shared with Facebook. Additionally, the app also set a now-extended deadline that would require users to agree to the new terms of service by February 8 if they intended to continue using the app.
The government seeks clarification about what sort of data WhatsApp collects and raises concerns about how sharing data with Facebook may create security risks and vulnerabilities for users.
With over 400 million users, India represents the largest market for WhatsApp. This, along with the fact that it plays a strategic role in the $5.7B investment made by Facebook in India's largest telco, means that this development may have significant ramifications for the company's plans. We'll update this story as it unfolds.