According to a German regulator, Facebook's new privacy policy for WhatsApp is illegal.

On Tuesday, Johannes Caspar, Hamburg's Commissioner responsible for Data Protection, ordered Facebook to stop processing personal data of WhatsApp users, citing problematic and contradictory terms in the new privacy policy, which allow for the mass profiling of users and could violate European data protection rules.
See also: WhatsApp: Those who do not accept the privacy terms lose the app's features
So Caspar issued an order prohibiting Facebook from processing the data of German WhatsApp users for three months.
“The order aims to safeguard the rights and freedoms of many millions of users across Germany who give their consent to the terms of use,” Caspar said.
“It is important to avoid the problems and damages associated with such a black box process“.
Following the ban order, Facebook said it was considering its legal options and planned to appeal.

Facebook: What is WhatsApp's new data policy that the German regulator condemns?
Facebook, the owner of WhatsApp, has made some changes to the messaging app's privacy policy. Users have been asked to agree to these new terms and conditions by May 15.These terms allow Facebook to access private data.
The company, which has more than 60 million users in Germany, is urging all of its users worldwide (around 1.5 billion users) to update the app as soon as possible.
It's part of CEO Mark Zuckerberg to monetize WhatsApp.
The German regulator began looking into the issue last month, as it was concerned that users were being forced to agree to the new privacy policy in order not to be cut off from the service.
Learn more: WhatsApp: New privacy policy could be illegal
Caspar said the Cambridge Analytica and the recent data leak that affected more than 500 million Facebook users “show the scale and risks created by mass profiling.”
The Hamburg official urged EU regulators to impose a similar ban in other member states.

How did WhatsApp respond?
WhatsApp denied that the update was linked to the expansion of data sharing with Facebook and stressed that it only related to messages between businesses and customers.
A company spokesperson said that the Hamburg ban order “is based on a misunderstanding of the purpose and effect of the WhatsApp update and is therefore unfounded.”
See also: WhatsApp: Disappearing Messages feature is being upgraded
WhatsApp initially tried to roll out the update earlier this year, but backed down after user backlash, with many opting to abandon WhatsApp and switch to other similar apps, such as Signal and Telegram, which place a greater emphasis on privacy.
Source: DW
