Studies show that 80% of Germans use WhatsApp at least weekly. This popularity has led many businesses using WhatsApp Business to look for WhatsApp Business Solutions that are both practical and GDPR-compliant.
In this blog post, we’ll take a look at the latest developments in WhatsApp Business as of February 2025, focusing on data privacy, compliance, and the differences between the various WhatsApp offerings. We will also discuss how businesses can use the WhatsApp Business Platform to communicate with customers while complying with data privacy regulations like the GDPR.
WhatsApp App vs. WhatsApp Business App vs. WhatsApp Business Cloud API To understand the privacy implications, it’s important to distinguish between the three main WhatsApp offerings:
- WhatsApp App (for private use) The standard WhatsApp App is intended for personal use and explicitly prohibits commercial use. From a privacy perspective, this messaging app is problematic as it automatically uploads all contacts from a user’s phonebook to servers in the USA. This practice often lacks legal grounds and violates the GDPR. Therefore, this app cannot be used legally outside of private contexts.
- WhatsApp Business App (for small businesses) The WhatsApp Business App is a free, standalone version developed specifically for small businesses. It offers features like business profiles, catalogs, and automated messages, making it easier for businesses to communicate with customers. However, this app also syncs phonebook contacts with US servers, raising significant privacy concerns. As a result, it is also not legally compliant for business use.
- WhatsApp Business Cloud API (for medium and large businesses) The WhatsApp Business Cloud API is a paid web solution targeted at medium and large businesses. Unlike the apps, it does not require installing WhatsApp on a device, thereby avoiding the automatic transfer of phonebook contacts. Instead, businesses use Business Solution Providers (BSPs) to access the API, which handles communication via independent server infrastructures.
The Role of Business Solution Providers (BSPs) A major advantage of the WhatsApp Business Cloud API is that businesses can store chat data on servers of their chosen BSP. By selecting a BSP with servers in the EU/EEA, businesses can avoid problematic data transfers to third countries.
Additionally, businesses must ensure that they enter into a data processing agreement (DPA) with their BSP in accordance with Article 28 of the GDPR. This is essential for GDPR compliance.
End-to-End Encryption and Metadata WhatsApp’s end-to-end encryption ensures that only the sender and recipient can read WhatsApp messages, providing a high level of security. However, WhatsApp has access to metadata such as phone numbers, IP addresses, and timestamps. According to its privacy policy, WhatsApp processes this data based on its legitimate interests (Art. 6(1)(f) GDPR) to improve, secure, and analyze its service. Customers must be transparently informed about this, which means businesses must provide WhatsApp’s privacy policy to customers.
Is WhatsApp a Data Controller or Data Processor? For certain data, WhatsApp independently determines the purposes and means of processing, particularly metadata and log data. This is the central criterion for determining responsibility under Art. 4(7) GDPR. For this data, WhatsApp is the data controller under the GDPR. In the WhatsApp Business Terms of Use, WhatsApp declares itself to be a data processor (see Section 7). The handling of metadata and log data (see in the general privacy information from WhatsApp under “Automatically Collected Information”) is not further clarified for the WhatsApp Business Cloud API. Therefore, it can be assumed that this data is also processed under the WhatsApp Business Cloud API. Unfortunately, WhatsApp is not transparent about this. This is a privacy concern. In any case, WhatsApp plays a dual role as both a data processor and data controller. Businesses using the WhatsApp Business Cloud API must inform customers about the use of this metadata and log data by WhatsApp as the data controller (e.g., in their own privacy policies).
New Features, AI Integration, and Privacy Considerations In 2025, WhatsApp introduced several AI-powered features and CRM integrations designed to improve customer communication. While these tools enhance service efficiency and personalization, they also raise new privacy concerns that businesses need to carefully consider:
AI-Powered Automation WhatsApp has introduced AI-powered widgets and automated response systems that allow businesses to interact with customers more quickly and efficiently. However, the use of AI tools to process customer data also requires strict adherence to privacy laws. Businesses using AI tools must ensure that the customer data processed by these tools is not exposed to unauthorized access. Therefore, specific data processing agreements are required.
CRM Integrations and Privacy Risks Integrating CRM systems with WhatsApp allows businesses to optimize customer interactions. As mentioned above, transparency obligations should not be overlooked. Customers must be informed about the processing of their data in privacy notices.
Analytics Tools and Data Exposure WhatsApp’s advanced analytics features enable businesses to track engagement metrics like open rates and response times. Businesses should ideally anonymize or pseudonymize this data to minimize privacy risks.
Best Practices for Businesses Using WhatsApp Business in 2025
- Choose the right solution: From a privacy perspective, only the WhatsApp Business Cloud API should be used.
- Select a GDPR-compliant BSP: Work with a BSP that operates servers in the EU/EEA and, if necessary, offers on-premise solutions.
- Update privacy policies: Clearly inform users about how their data is processed when using WhatsApp.
- Use automation and AI, while adhering to privacy regulations: Ensure customers are transparently informed about the processing of their data.
- Regularly review settings: Ensure privacy settings are configured to minimize data processing.
The Future of WhatsApp Business In February 2025, WhatsApp continues to dominate the messaging app market. The business offerings are becoming increasingly sophisticated. The integration of AI-powered tools, enhanced analytics capabilities, and seamless CRM integrations make customer interactions easier for businesses.
However, the relationship between WhatsApp and Facebook, and generally the data privacy compliance of WhatsApp, remains a contentious issue, particularly regarding transparency in data processing. Businesses must monitor developments to ensure their use of WhatsApp remains legally compliant.
Conclusion The WhatsApp Business Platform offers powerful tools for communicating with customers. By using the WhatsApp Business Cloud API and working with GDPR-compliant BSPs, businesses can minimize privacy risks.
Although challenges remain, particularly regarding the processing of metadata, AI-powered tools, and data transfers to third countries, WhatsApp remains a valuable tool for customer communication in 2025.
