WhatsApp, Meta Get Relief as NCLAT Suspends Data Sharing Ban
In a major reprieve for Meta, India’s National Company Law Appellate Tribunal (NCLAT) has temporarily suspended the Competition Commission of India’s (CCI) directive that banned data sharing between WhatsApp and other Meta-owned entities for advertising purposes. The suspension will remain in effect while the tribunal continues to review Meta’s challenge against the antitrust ruling.
Meta’s Challenge to CCI’s Order
Meta had contested the CCI’s November ruling, arguing that the regulatory body lacked the technical expertise to fully grasp the implications of its decision. The company warned that enforcing the data-sharing ban could force it to roll back or pause certain features, potentially affecting businesses using WhatsApp for advertising.
The tribunal acknowledged Meta’s concerns, noting that the ban could significantly impact WhatsApp’s business model, which relies on data integration for personalized advertising.
Impact on Meta’s Business in India
India is Meta’s largest market, with over 500 million WhatsApp users and more than 350 million Facebook users. The company has emphasized that data sharing between its platforms enables businesses to provide personalized ads on Facebook and Instagram based on WhatsApp interactions.
Meta’s registered advertising business in India, Facebook India Online Services, reported a revenue of $351 million (approximately ₹3,033 crore) in 2023-24—the highest in at least five years.
A Meta spokesperson welcomed the tribunal’s ruling, stating that the company would “evaluate next steps.” Meanwhile, the CCI has yet to respond to the decision but retains the option to challenge it in the Supreme Court.
Background of the Privacy Dispute
The case against WhatsApp dates back to 2021 when the company faced backlash over changes to its privacy policy. The CCI’s investigation found that WhatsApp’s policy updates forced users to accept new terms or risk losing access to the service, raising concerns about user consent.
Meta, however, has maintained that the changes were merely intended to provide transparency regarding optional business messaging features and did not expand its data collection or sharing capabilities.
Despite Meta’s assurances, the CCI ruled in November that WhatsApp must give users the option to decide whether their data should be shared with Meta-owned platforms. With the latest tribunal decision, the fate of WhatsApp’s data-sharing policies in India remains uncertain as legal proceedings continue.
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