In a significant legal victory, Meta Platforms and its subsidiary, WhatsApp, have secured temporary relief from the National Company Law Appellate Tribunal (NCLAT) in India. The tribunal has suspended a five-year ban previously imposed by the Competition Commission of India (CCI) on data sharing between WhatsApp and Meta for advertising purposes. This decision allows WhatsApp to continue its current data-sharing practices while the antitrust ruling undergoes further examination.
The CCI's initial directive, issued in November 2024, accused WhatsApp of abusing its dominant market position by enforcing a "take-it-or-leave-it" privacy policy that expanded data collection without providing users an opt-out option. The commission imposed a ₹213 crore (approximately $25.4 million) fine and prohibited data sharing for five years, a move that Meta argued could disrupt WhatsApp's business model in India, its largest market with over 500 million users.
In response to Meta's appeal, the NCLAT bench, led by Justice Ashok Bhushan, expressed concern that the CCI's ban could lead to a collapse of WhatsApp's business model. Consequently, the tribunal stayed the five-year prohibition but upheld the requirement for WhatsApp to provide detailed explanations regarding the purpose of user data sharing. Additionally, the NCLAT directed Meta to deposit 50% of the ₹213 crore penalty within two weeks, considering that 25% had already been paid.
Meta welcomed the tribunal's decision, stating that it would evaluate the next steps while focusing on supporting millions of businesses that depend on its platform for growth and innovation. The company also highlighted the importance of providing high-quality experiences that users expect from WhatsApp. The CCI has yet to comment on the tribunal's ruling.
This development underscores the ongoing tension between global tech giants and regulatory bodies in India, especially concerning data privacy and market dominance. As the country prepares to implement its new data protection law later this year, the outcome of this case could set a significant precedent for how user data is managed and shared by technology companies operating in the region.
