The National Company Law Appellate Tribunal (NCLAT) on Thursday struck down a five-year data-sharing ban imposed by competition watchdog CCI on data-sharing practices between WhatsApp and its parent Meta for advertising purposes, giving the tech giant a breather.
Meta has challenged the Competition Commission of India’s (CCI) order issued in November 2024 that imposed a ban on data sharing between WhatsApp and other Meta entities for advertising purposes, warning that it may have to roll back some aspects. It also slapped a fine of Rs 213 on Meta for abusing its “superior position.” The CCI also concluded that WhatsApp’s 2021 privacy policy update unfairly forces users to consent to extensive data collection and sharing within the Meta group.
NCALT suspended the ban while hearing Meta’s challenge to the antitrust ruling. The NCLAT will hear the case on March 17.
Meta welcomed “NCLAT’s decision to grant partial stay on Competition Commission of India (CCI) order” and said it would consider next steps.
“While we will explore next steps, we are focused on finding a way forward that supports the millions of businesses that rely on our platform to grow and innovate and provide the high-quality experience people expect from WhatsApp,” said a Meta spokesperson.
In November, the CCI imposed a fine of Rs 213.14 crore on social media major Meta for unfair business practices in relation to the WhatsApp privacy policy update made in 2021.
Meta Platforms and WhatsApp had challenged the order before the NCLAT, which is the appellate authority over the orders passed by the CCI.
In its 156-page order, the CCI on November 18, 2024, ordered Meta to cease and desist from anti-competitive practices.
According to that CCI order, Meta and WhatsApp have also been asked to implement certain behavioral remedies within the prescribed timeline to address the anti-competitive issues.
The regulator asked for various corrective measures, including preventing WhatsApp from sharing data collected on its site with other Meta companies or Meta company products for advertising purposes for five years.
Among other directions, the CCI said that sharing user data collected on WhatsApp with other Meta companies or Meta company products for purposes other than providing WhatsApp services will not be made a condition for users to access WhatsApp services in India.
