New Delhi, Jan 24 : Meta secured a partial victory in an ongoing antitrust case in India on January 23, 2025, as the National Company Law Appellate Tribunal (NCLAT) set aside a directive issued by the Competition Commission of India (CCI). The CCI had instructed WhatsApp to stop sharing user data with other Meta platforms for advertising purposes until 2029.
The CCI’s original order, issued in November 2024, imposed a ₹213 crore fine on WhatsApp for allegedly exploiting its dominance in the over-the-top (OTT) messaging market and imposing unfair terms on users. The probe centered around WhatsApp’s 2021 privacy policy update, which mandated data sharing between the messaging platform and other Meta-owned services, including Facebook and Instagram, raising concerns about user privacy and market fairness.
In response, Meta appealed to the NCLAT, arguing that the directive should be stayed. Senior advocates Kapil Sibal and Mukul Rohatgi, representing Meta, argued that WhatsApp’s data-sharing practices were essential for business sustainability, stating, “Just as Google uses search data for ads and Google Maps accesses location data, WhatsApp, while free, cannot operate as a philanthropic entity,” during a hearing on January 16.
While the NCLAT granted Meta a temporary stay on one of the five directives from the CCI, the tribunal also ordered WhatsApp to deposit 50% of the imposed penalty, amounting to ₹106.5 crore, within two weeks.
The CCI had opposed any stay on its order, citing that WhatsApp allowed users in Europe to opt-out of data sharing, while imposing a “take-it-or-leave-it” policy in India. The CCI argued that this approach was unfair and discriminatory.
However, the NCLAT ruled in favor of WhatsApp, stating that halting the sharing of user data with other Meta platforms “may lead to the collapse of business model which has been followed by WhatsApp LLC.” The tribunal further emphasized, “It is also relevant to notice that WhatsApp is providing WhatsApp services to its user free of cost.”
Despite the partial relief, several of the CCI’s directives remain in place. These include requirements for WhatsApp to provide detailed explanations about the data being shared with other Meta platforms and to allow users in India to opt-out of data sharing by 2029.
In a statement following the NCLAT ruling, Meta expressed its satisfaction with the decision: “We welcome the NCLAT’s decision to grant a partial stay on the Competition Commission of India’s (CCI) order. While we will evaluate next steps, our focus remains on finding a path forward that supports millions of businesses that depend on our platform for growth and innovation as well as providing high-quality experiences that people expect from WhatsApp,” the company said. The case highlights ongoing tensions between tech giants and regulators in India over data privacy and market practices, as Meta and other companies navigate the complexities of operating in one of the world’s largest and fastest-growing digital markets.
